The People's Bank of China (hereinafter referred to as the "central bank") recently announced that on April 7th, the central bank will carry out an 800 billion yuan buyout reverse repurchase operation through a fixed quantity, interest rate bidding, and multi price bidding method, with a term of 3 months (89 days) and a maturity date of July 5, 2026. Data shows that in April, there was a maturity of 1.1 trillion yuan in 3-month buyout reverse repurchase agreements, which means that the 3-month buyout reverse repurchase agreements were renewed with a reduced volume of 300 billion yuan. In addition, since April, the central bank has also conducted "land volume" reverse repurchase operations on April 1st, April 2nd, and April 3rd consecutively. We judge that the continuous reduction in volume of 3-month buyout reverse repurchase is consistent with the recent continuous' volume 'operations in the public market, mainly due to the loose market liquidity since early April. ”Wang Qing, Chief Macro Analyst of Dongfang Jincheng, believes that. Wang Qing stated that the monthly average overnight collateralized repo rate (DR001) of deposit financial institutions has been consistently below 1.3% in recent days. On April 2nd, the yield to maturity of 1-year commercial bank (AAA rated) interbank certificates of deposit fell below 1.5%, hitting a historic low, and both are at a relatively low level. This is mainly driven by factors such as the central bank's comprehensive use of Medium Term Lending Facility (MLF) and buyout style reverse repurchase large-scale net injection of 1.9 trillion yuan of medium-term liquidity from January to February, as well as the relatively low net financing scale of government bonds in March. Huachuang Securities analyst Song Qi further analyzed that since March, buyout reverse repurchase has gradually shifted from net investment to net withdrawal, marking the first time since June 2025. In mid April and at the end of the month, the maturity scale of the 6-month buyout reverse repurchase and MLF was 600 billion yuan. Considering the limited demand for central bank liquidity from financial institutions, it is not ruled out to continue reducing the amount of investment. The short-term funding situation may continue to be loose, and the funding gap may appear in late April. If the central bank exercises restraint, it is not ruled out that the marginal price of funds may slightly rise. ”Song Qi said. Lin Yaheng, a macro strategy analyst at Southern Fund, stated that the central bank's early announcement of the launch of an 800 billion yuan 3-month buyout reverse repurchase operation reflects strong foresight and rhythm management capabilities overall. Overall, against the backdrop of marginal improvement in the current economic fundamentals, the central bank emphasizes more on "stability without looseness, looseness with moderation" in its operations. Through precise hedging and a combination of structural tools, it maintains reasonable and abundant liquidity but not excessively loose, leaving room for subsequent policies. (New Society)