5 billion yuan reverse repurchase hits a 10-year low, analysis says liquidity is expected to remain loose in April.

On the first trading day of April, the central bank sparked market attention with a "moderate" operation: the central bank announced on April 1 that it conducted 5 billion yuan of 7-day reverse repo operations with a bid rate of 1.4%. With 785 billion yuan of reverse repos maturing on that day, the central bank realized a net withdrawal of 780 billion yuan. This reverse repo operation was at its lowest level since 2015. Analysts believe that in the context of loose liquidity, this signals the central bank's intention to stabilize and guide interest rates to operate in a reasonable range. Overall, the liquidity environment will remain ample, but there is limited room for interest rates to continue to decline significantly.