CITIC Securities: The details of the central bank's "borrowing" have been further clarified

On July 5th, the chief economist of CITIC Securities Mingming said that the way for the central bank to carry out the borrowing operation of government bonds and even sell government bonds later has been further clarified. The central bank's use of credit borrowing means that the central bank will not provide collateral to banks that lend government bonds, which also means that the process of borrowing bonds will not achieve liquidity delivery. In addition, the central bank has indicated that it will use the method of borrowing bonds with no fixed term, which means that the central bank's control of the yield curve will not be limited to a certain maturity variety. Compared with preventing long-end yields from being too low, the central bank's intention may be to completely control an upward yield curve.