Expert: It is expected that the People's Bank of China will use a 14-day reverse repurchase operation in the week before the Spring Festival, and flexibly carry out reverse repurchase and MLF operations.

Looking ahead to the funding situation in February, from the perspective of disruptive factors, Wang Qing, Chief Macro Analyst at Orient Securities, believes that before the Spring Festival, there will be a peak in cash withdrawals by residents, and the issuance of government bonds will continue to be at a high level to meet the funding needs of major projects in key areas, increasing disruptive factors in the funding situation. In order to counteract a potential tightening trend in liquidity, it is expected that the People's Bank of China will utilize 14-day reverse repurchase agreements in the week before the Spring Festival, while also flexibly implementing buyback-style reverse repurchase agreements and MLF operations, continuing to inject a certain amount of medium-term liquidity into the market. Although the probability of a reserve requirement ratio cut in the short term is small, the funding situation will continue to be in a relatively stable and abundant state, effectively controlling the volatility of DR007 and causing the volatility of DR001 to converge closer to the average level of previous years.