Overnight Repo Rate on Shanghai Stock Exchange Soars to 35%

This isn't bank rates, but it does reveal the stress in the financial system as firms settle up at year end.

Overnight interbank exchange calm broke 36% (银行间风平浪静 交易所隔夜升破36%)

Core Tip: Following last week's inter-bank market staged a short-term lending rate madness, the Shanghai Stock Exchange on Monday staged drama hurricane bond pledged repo (GC001) overnight interest rates again, day volatility in 12-37%.

Following last week's inter-bank market staged a short-term lending rate madness, put on the Shanghai Stock Exchange on Monday pledged bond repo (GC001) overnight interest rates again hurricane drama, volatility in the days of 12-37%.

Line traders on the "First Financial Daily" reporters refer to "read": I do not know what happened Shanghai Stock Exchange market resulted in the overnight repo rate collateralized debt soaring midday start, Wind data showed Monday 13:32 start, began to violently overnight repo rate to rise to around 20% of the average interest rate soared from morning to around 35%, after experiencing a short fall, 14:52 once again soared to more than 36%, then the ups and down to around 6.3% closing level.

Even more strange is that the interbank market yesterday, with a calm period is the weighted average interest rate of only 3.2549%, although there are round midday highs, but a maximum of only 4.85%, far less than one-tenth of the exchange market .

Differences in the two above-mentioned roller coaster of the stock market and bond market analysts and dizzy line traders, they have told reporters that the kinds of speculation, but in the end are "do not understand, just speculation" at the end.

Because both sides exchange market buy-back of non-bank institutions, so some analysts and traders most intuitive feeling is that non-bank money market, more than the inter-bank market.

A bond fund analyst Li Qilin told reporters: "It should now be Monday before the last day on which a withdrawal to fund, for example, if a customer year-end redemption pressure, to meet customer needs while avoiding the redemption of such Bonds sold under the background of a bear market, the high cost of lending institutions can only choose to, in the case of the current state of this debt-based radiate crash, the fund manager first thing to consider is to avoid selling coupons. "

Securities owned tube with the letter W Huang Ji also told this reporter, said: "Monday's repo rate hikes may be affected because the exchange takes three days, because overnight the product expires the next day, but the third day of the delivery, the delivery date happens to be New Year's Day. "

Market analysts said there are two markets overnight repo rate trend away from the obvious reason is that two different markets itself. After June interbank liquidity squeeze caused by excessive market volatility, the central bank window guidance on the implementation of the inter-bank market, the situation appears to prohibit excessive interest rates, which led to the bank of foreign lending are not enthusiastic. "This afternoon there is a burst overnight inter-bank borrowing is not good, because at this price Placements sure loss, but at cost split out the central bank will be guided." Tier one trader said the reporter.

Sealand Securities investment banking executive general manager Wang Jie, told reporters that the inter-bank market opening price influenced by the big firms, OTC transactions are also reference the current weighted average price; And relatively speaking, every time the Exchange The prices are determined by demand and supply, while volume growth significantly repurchase transactions, the relative proportion between banks increased their demand caused prices to enhance the uplink.

In other words, compared to inter-bank markets, exchanges overnight repo rate to some extent, may better reflect the actual supply and demand situation of the market.

In addition, Huang Ji wide that, given the overnight inter-bank market, the cost of capital and some too low, banks should exist between Tuesday upside market interest rates.

No comments:

Post a Comment