(ATF) – The Chinese government bond futures market closed sharply higher on March 4 after the US Fed announced an interest rate cut of 50 basis points to 1.00% -1.25% overnight.
As of the close in the afternoon, 10-year main contracts rose 0.42%, and the 5-year main contracts rose 0.28%. Two-year main contracts rose 0.11%.
On March 4, the People’s Bank of China announced that current total liquidity of the banking system was at a reasonable and sufficient level, and no reverse repurchase operation would be launched.
In view of the expiration of today’s non-reverse repurchase, the central bank achieved zero investment and zero return, Sina Finance noted.
The US Federal Reserve cut interest rates by 50 basis points on Tuesday in an emergency move to protect the United States from the economic shock of the coronavirus epidemic. This is the first time the Federal Reserve has taken such action since the financial crisis in December 2008.
This time the interest rate cut brought the benchmark interest rate down to the target range of 1% -1.25%.?
