As per the Wind Resources, the total capital at term this week in the public market is 140 billion yuan. There are still 80 billion yuan needs to be hedged after cooping yesterday. In the whole March, the central bank has capital at term at amount of 656.8 billion yuan, and the repurchase agreement total amount at term is 80 billion yuan. There will be 736.8 billion yuan of capital at term need to be hedged in total.

 “In March, the central bank has large amount of notes at term.  Well, there is little possibility to adjust up the legal deposit reserve ration in March, and the pressure of cooping back capital is enlarging, the central bank is quite possible to restart its notes with term of 3 years.” Mr. Chen Jian Heng, the researcher of the regular income department of China International Capital Corporation said.

Professionals think that it isn’t by change to see the central bank to issue more notes with term of one year. It shows that the central bank is getting back its capital adjusting function through public market. There is little probability to adjust up again the deposit reserve ration in the first quarter.

As per a report published by Bank of China, it is said that if the central wants to enlarge the issuing scale of its notes to coop largely the money, it will continue rising the yield of its notes with term of one year, or restart issuing its notes with term of three years, or launch the both.

Viewing from the international environment, the trend of tightening the fluidity is more and more obvious. After the Federal Reserve had adjusted up 25 basic points to 0.75% of the discount rate for banks on Feb 18th, yesterday Australia central bank declared to adjust again 25 basic points to 4% of the discount rate for banks. This is already the fourth time for Australia central bank to rise the interest during the five meetings in the past.