China Foreign Exchange Trading Center: The total turnover in the currency market in November was 16.96 trillion yuan, an increase of 15% month-on-month.

Recently, the China Foreign Exchange Trading Center released the "November 2024 Interbank RMB Market Operation Report." The report states that in November, the trading volume in the money market increased while the average daily balance decreased. Most of the main repurchase rates declined, and the daily net lending balance of large commercial banks remained stable. The total trading volume in the money market in November was 16.96 trillion yuan (an increase of 15% compared to the previous month), with an average daily trading volume of 8.1 trillion yuan (an increase of 4% compared to the previous month). The MLF continued to be carried out with a scale of 900 billion yuan, and the net reverse repurchase amounted to 610.6 billion yuan (including 800 billion yuan of buy-back reverse repurchase). In addition, there was a net purchase of government bonds of 200 billion yuan, and a net issuance of 40 billion yuan in Treasury cash deposits, resulting in an overall net injection of 300.6 billion yuan through policy operations for the month. The report further discusses the impacts of the Fed's interest rate cut, the increasing domestic macroeconomic indicators, and the effects of the concentrated issuance of replacement bonds on bond issuance and trading. It also covers the overall movement of yield curves and the increase in interest rate swap trading volume in November.The 1-year and 5-year SHIBOR 3M swap rates were 1.7625%, 1.6294%, and 1.6617%, respectively, down 7, 12, and 18 basis points from the end of last month. The 1-year, 5-year, and 10-year FR007 swap rates were 1.5907%, 1.6292%, and 1.8213%, respectively, down 11, 16, and 17 basis points from the end of last month.The daily trading volume of interest rate swaps increased. In November, a total of 30,000 interest rate swaps were traded in Renminbi, with a daily average decrease of 0.7% compared to the previous month; the total nominal principal amount was 3.1 trillion yuan, with a daily average trading volume of 1492.9 billion yuan, an increase of 5.7% compared to the previous month. The daily trading volume of bond forwards increased compared to the previous month, while the daily trading volume of interest rate options decreased. In November, 1011 standard bond forwards were traded, with a nominal principal of 1907.1 billion yuan, a daily average increase of 6% compared to the previous month. 4 Renminbi interest rate options were traded with a nominal principal of 20 billion yuan, with a daily average decrease of 21.5% compared to the previous month, all of which were interest rate cap/floor options. This article is excerpted from the WeChat public account "China Monetary Market", author unit: Market Department of China Foreign Exchange Trading Center; the full text of the "November 2024 Interbank Market Operation Report" will be published in the December 2024 issue of the "China Monetary Market" magazine hosted by the China Foreign Exchange Trading Center; GMTEight editor: "Liu Xuan".