CITIC Securities Investment: Southbound investment quota expansion, loose funding curve steepens.

CITIC Construction Investment Research Report stated that the price of funds fell slightly this week, but the probability of further tightening of monetary policy in the short term is small, so there is limited room for the price of funds to fall further. In terms of bond market supply, this week interbank certificates of deposit had a slight net issuance, with net issuance from Chinese banks, while joint-stock banks, city commercial banks, and rural commercial banks had a net repayment; there was a net issuance of government bonds and local government bonds, with policy bank bonds having a slight net repayment. As for interest rate bonds, interest rates overall decreased this week, with the yield curve steepening. In terms of credit bonds, the spreads of medium and short-term high-rated credit bonds narrowed slightly, while the spreads of long-term high-rated bonds widened slightly.