Liquidity "draining long-term, injecting short-term"; outright reverse repo stops increasing volume in September.

In September, both outright reverse repos of two tenors were rolled over in equal amounts, ending the previous process of two consecutive months of increased-volume rollovers. Previously, the 3-month outright reverse repo in September was also rolled over in equal amount. In the money market, as of 15:00, the intraday weighted average of DR001 was 1.4281%, and the weighted average of DR007 was 1.4234%. Currently, money market rates are fluctuating slightly around the central level. Wang Qing, chief macro analyst at Orient Golden Credit, analyzed that current market liquidity is relatively loose; with an eye to preventing major market rates from deviating significantly downward from the policy rate center, since early September the central bank's 7-day reverse repos have mostly been minimal operations or zero operations, aiming to guide DR001 to run steadily around the policy rate. The equal-amount rollovers of outright reverse repos of both tenors in September also reflect this regulatory orientation to a certain extent. The policy support demand for stabilizing growth still exists. Wang Qing analyzed that on the whole, macro policy will further step up efforts in the direction of stabilizing growth, including accelerating government bond issuance and accelerating the deployment of the 800 billion yuan new-type policy-based financial instruments, which requires the central bank to provide support in terms of liquidity.