Central Bank Uses Multiple Tools to Support Liquidity; Money Market Expected to Remain Stable in October

On October 8, the central bank conducted overnight reverse repos totaling 606 billion yuan and 120 billion yuan in three-month buyout reverse repos. Considering maturities on that day, open market operations resulted in a net withdrawal of 408.5 billion yuan. Industry experts believe that cash inflows after the National Day holiday and earlier fiscal expenditures are expected to support liquidity in early October, while tax payments, month-end rollovers, and maturities of medium-to-long-term liquidity tools will be key factors in the latter half of the month. As the central bank's liquidity management becomes more flexible, the money market is expected to remain generally stable, though banks' demand for medium-to-long-term funds remains a focus.