On Tuesday and Wednesday, the 7-day reverse repurchase in the open market had “zero operation” for 2 consecutive days. At one point, the market speculated whether the central bank's move intended to regulate the downward trend in bond market yields by marginally tightening short-term liquidity investment. However, on Wednesday evening, the central bank announced that in the future, an overnight reverse repurchase operation will be carried out over 4 days, with a single-day maximum operation limit of 600 billion yuan. The news came out, market sentiment boosted, and the bond market strengthened once again. Judging from the actual effect, unlike the previous two months of operations at the end of the month, this additional mid-month operation can accurately hedge against superimposed financial disturbances such as tax periods, payments, and government bond issuance in mid-August to ensure sufficient and orderly funding; moreover, the announcement did not specify the specific scale of operations in advance, but only mentioned the upper limit of operations, which fits the uncertainty of the impact of flexible tax payment dates on the liquidity of the banking system and preserves the flexibility and moderation of monetary policy operations.

On Tuesday and Wednesday, the 7-day reverse repurchase in the open market had “zero operation” for 2 consecutive days. At one point, the market speculated whether the central bank's move intended to regulate the downward trend in bond market yields by marginally tightening short-term liquidity investment. However, on Wednesday evening, the central bank announced that in the future, an overnight reverse repurchase operation will be carried out over 4 days, with a single-day maximum operation limit of 600 billion yuan. The news came out, market sentiment boosted, and the bond market strengthened once again. Judging from the actual effect, unlike the previous two months of operations at the end of the month, this additional mid-month operation can accurately hedge against superimposed financial disturbances such as tax periods, payments, and government bond issuance in mid-August to ensure sufficient and orderly funding; moreover, the announcement did not specify the specific scale of operations in advance, but only mentioned the upper limit of operations, which fits the uncertainty of the impact of flexible tax payment dates on the liquidity of the banking system and preserves the flexibility and moderation of monetary policy operations.