According to a research report by CITIC Securities, when excluding the impact of Medium-term Lending Facility (MLF) and reverse repo maturities, the liquidity gap in September is anticipated to narrow further compared to August. The expected influence from government bond supply is deemed limited, and monetary policy is set to remain accommodative. Should funding rates maintain stability, there will be opportunities for leveraging strategies and credit bond arbitrage. Investors can capitalize on these market conditions for allocation purposes, albeit with due consideration for the stability of the liability side. Trading operations may continue to face pressures, necessitating a cautious approach.
