Expert: The central bank's suspension of government bond purchases does not mean that market liquidity is tightening

On January 10, Dong Ximiao, chief researcher of China Merchants Finance, said that the People's Bank of China announced the suspension of treasury bond purchases, which will help balance the supply and demand relationship in the treasury bond market. Treasury bond purchases are an important way for the People's Bank of China to release liquidity, but the suspension of treasury bond purchases does not mean that market liquidity is tightened. It is expected that in the next step, the People's Bank of China will inject short-term and long-term funds into the market through open market operations and reduce the deposit reserve ratio, etc., to continue to maintain abundant market liquidity. Feng Lin, executive director of the R & D department of Dongfang Jincheng, believes that if the supply of government bonds increases in the future, the yield of long-term bonds rebounds to a reasonable level, and the market supply and demand relationship can be spontaneously balanced, the People's