Since early April, the market liquidity has been relatively loose, with the People's Bank of China continuing to reduce the volume of its 6-month period reverse repurchase agreements.

The buyout-style reverse repurchase continues to shrink in volume. The People's Bank of China announced on April 14 that in order to maintain the liquidity of the banking system, it will conduct 500 billion yuan of buyout-style reverse repurchase operations on April 15 through fixed quantity, rate bidding, and multiple price-winning methods with a term of 6 months. This operation will net withdraw 100 billion yuan. Considering that 3-month buyout-style reverse repurchase operations have already net withdrawn 300 billion yuan this month, the total net withdrawal from buyout-style reverse repurchase operations in April is 400 billion yuan. Industry experts generally believe that the recent net withdrawal from buyout-style reverse repurchases, as well as the "small quantity" operations of 7-day reverse repurchases, are related to the current loose liquidity in the market and the decreasing liquidity demand of financial institutions for the central bank. Wang Qing, Chief Macro Analyst at East Money Credit, stated: "This is mainly because liquidity in the market has been relatively loose since early April."