Experts in the Future of Government Bond Boosting: The possibility of monetary policy interest rate cuts cannot be ruled out

On April 1, some market institutions believed that special treasury bond were expected to be issued in the second quarter and put into use in the third quarter, forming a physical workload. In the past, special treasury bond has been issued both directionally and market-based. Luo Zhiheng, chief economist of Yuekai Securities, said that if thedirectional issuancemethod is adopted, the Ministry of Finance will issue special treasury bond bonds in the primary market, and the central bank will then purchase them in the secondary market. This method will not crowd out the capital. If special treasury bond bondsare issued in the market, market institutions generally expect that the central bank will take measures to smooth the capital surface, such as increasing the public market investment and reducing the reserve ratio, in order to protect the stability of the capital surface. Wu Chaoming, Vice President of the Institute of Finance and Information Technology, also pointed out that in the scenario of a possible increase in government bond supply in the second and third quarters, tight liquidity may lead to a short-term increase in market fund interest rates. In order to comply with the government's low-cost bond issuance and stabilize expectations and demand, the possibility of monetary policy interest rate cuts cannot be ruled out.