300 billion overnight reverse repurchase "debut" without disclosing prices, market participants: the central bank intends to prevent policy signals from being excessively interpreted.

On June 29th, the central bank officially launched the overnight reverse repurchase operation in open market operations. However, the announcement did not disclose the operation rate for the overnight reverse repurchase at the same time. It was widely expected in the market that the central bank would announce the rate simultaneously in today's announcement, with most institutions predicting a range of 1.30% - 1.35%. The practice of "providing quantity but not price" has attracted widespread attention. In the view of many market participants, today's practice of "providing quantity but not price" reflects the intention of the central bank to manage market expectations and prevent policy signals from being misinterpreted in the early stages of the tool's launch. A financial market professional from a major bank told reporters that the original intention of the central bank in introducing the overnight reverse repurchase tool was to smooth the market, not to create new disruptions in expectations. Some fixed-income professionals at securities firms also believe that the central bank's decision not to disclose the rate at this time is actually sending a clear signal to the market: the positioning of the overnight reverse repurchase at this stage is more focused on liquidity management at the end of the month, and it should not be interpreted as a "rate cut-like" signal or a policy rate adjustment.