This year's first issuance of ultra-long term special government bonds is scheduled for April 24th. The issuance plan for this year's ultra-long term special government bonds has been finalized, with the maturity varieties and issuance节奏 similar to last year. There is a view that bond demand may see further recovery this year, presenting potential investment opportunities in long-term and ultra-long-term bonds.
On one hand, institutional demand for bonds is expected to be higher compared to last year. Commercial banks are experiencing liability-side expansion driven by持续的 foreign exchange settlement needs. With weak demand for实体 loans, the widening deposit-loan gap also creates room for increased bond allocation by banks. Insurance institutions may reduce their equity allocations amid heightened stock market volatility. Simultaneously, a large volume of maturing time deposits could be redirected towards long-duration bonds, potentially boosting demand for bond配置.
Looking ahead, there remains a window for both allocation and trading opportunities at present.
The investment标的 of the China Development Bank Bond ETF Bosera (159650) are China Development Bank bonds traded in the interbank market. Policy financial bonds are considered worthwhile investment标的 due to their high credit ratings, large scale, and good liquidity. Therefore, the China Development Bank Bond ETF Bosera (159650) offers characteristics such as good liquidity, low credit risk, and relatively low volatility. It provides a reasonable risk-return profile, supports cash subscriptions and redemptions, and allows for flexible on-exchange trading, making it a suitable tool for short-duration allocation strategies.
In terms of market conditions, liquidity remained平稳 and宽松 last Friday (April 17th), with the central bank conducting a net injection of 198.5 billion yuan that day. On Monday (April 20th), liquidity conditions stayed宽松, with minimal changes in major funding rates, and the central bank's net injection was zero. Tuesday saw continued宽松 liquidity, with key funding rates stabilizing at low levels, accompanied by a net injection of 4 billion yuan by the central bank. On Wednesday,宽松 conditions persisted with little movement in major funding rates, and the central bank made a net injection of 5.5 billion yuan. Thursday maintained the宽松 trend, with key funding rates holding steady at low levels, and the central bank's net injection was zero. As of Thursday (April 23rd) compared to the previous Friday, the DR001 rate remained unchanged at 1.22%, while the DR007 rate also held steady at 1.32%.
Internationally, the Eurozone's preliminary Manufacturing PMI for April came in at 52.2, exceeding the expectation of 50.9 and up from the final March reading of 51.6. The preliminary Services PMI was 47.4, below the expected 49.8 and down from the final March figure of 50.2. The preliminary Composite PMI registered 48.6, missing the expectation of 50.1 and lower than the final March reading of 50.7.
U.S. Treasury Secretary Besant stated on social media on the 21st local time that the U.S. Navy will continue its blockade of Iranian ports, and the Treasury Department will maintain "maximum pressure" on Iran. Besant claimed that within days, storage facilities at Iran's key oil export hub, Kharg Island, will reach capacity, leading to the shutdown of Iranian oil wells. He stated that restricting Iran's maritime trade directly targets its main revenue streams. The U.S. Treasury will continue its "maximum pressure" campaign against Iran through "Operation Economic Fury" to "systematically degrade Iran's ability to raise, move, and repatriate funds."