International capital inflows slowdown and market-based reform of interest rates

Experienced in June capital extremely nervous situation, in recent two months, tight finances have been present state, and the central bank in the open market "lock short put long operation," let the market participants are always afraid to treat STH lightly, coupled with the 6" sch80 galvanized carbon steel pipe slowdown in international capital inflows and the market-based reform of interest rates and other factors, the rise is expected cost of capital is considerable.

On August 19, according to data, the Shanghai interbank offered rate (Shibor) short term rose across the board. Among them, the overnight rate rose 19.4 basis points to 3.403%. Seven-day rate rose 32 basis points, to 4.092%; 14 days interest rates rose 133.3 basis points, to 5.156%. One-month rate rose 36.5 basis points, to 4.925%.Were routed in the inter-bank bond market, the repo rate sharply upward, varieties of 14 days long radius butt weld pipe elbow and 21 days varieties respectively up 154.2 basis points and 120.6 basis points, to 5.359% and 5.376%.
From the point of the primary market, dealers association yesterday's non-financial corporate debt financing tool pricing valuation, according to the time limit valuations are lifted up, including 10 years and within each rating valuation varieties rises is more apparent, more than 8 basis points.

No positive repurchase due this week on the open market, and 26 billion yuan in 16 billion yuan bill time reverse repurchase due; If the carbon steel threaded connections tee central bank in the open market without any operation, this week will be drained a net 10 billion yuan.

"The central bank should continue to do reverse repurchase operation, are likely to increase the scale of operation, the interest rate should be stable or decreased." A city firm financial marketing researcher told our reporter, "the current financing area has been relatively tight, national debt is issued, the local government debt and debt-financed are struggling, the central bank will not let this situation continue."

Last week, the central bank to continue to carry out reverse repo, the scale of the varieties of 7 and 14 days is 11 billion yuan and 28 billion yuan respectively, as well as a sequel to the 75.5 billion yuan three-year bill; Combined with bill and reverse repurchase of the previous period expires, the influence of the week to open market net 47.5 billion yuan; If given another 50 billion yuan Treasury deposit account, the net quantity was closer to 100 billion yuan.