Jun 27, 2022 05:59 AM (GMT+8) · EqualOcean
On June 20, pledged repo transactions in the inter-bank market reached 6.46 trillion yuan, a new high this year. As of June 24, the pledge type repurchase transactions in the inter-bank market had been above 6.1 trillion yuan for 8 consecutive days. Even at the end of half a year, and nearly 1.2 trillion yuan of government bonds were issued in June, the capital is still quite abundant. The low capital price has enabled some bond market investors to give full play to the leverage strategy, and "borrowing short to buy long" has become an important source of their income. Many insiders warned that there would be an upward risk in interest rates, so it is not appropriate to continue to increase leverage at this time. It is suggested to gradually deleverage to reduce the risk.

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