PBOC's "combination punch" to protect, overall liquidity in the market in June is controllable.

In the context of continued efforts in monetary policy, the funding situation remains loose, achieving a smooth transition into the new month. As of the close on June 3, interest rates at various maturities have all decreased, with the indicative indicator of liquidity tensionthe DR007 weighted average interest ratefalling significantly by 11.49 basis points to 1.5496%. Analysts believe that overall market liquidity is manageable, and it is expected that with the precise injection of reverse repurchase agreements and fiscal expenditure at the beginning of June, interest rates are likely to remain low, and market sentiment in the bond market may stabilize and rebound.