The central bank's open market operations were flat this week, with MLF maturing next week totaling 237 billion RMB

The central bank's open market operations were flat this week, with 237 billion MLF maturing next week. Whether the MLF will be "cut" next week has become a major focus for the market. The central bank conducted 8 billion yuan of 7-day reverse repurchase operations this week, resulting in a net fund inflow of 20 billion yuan. On Monday next week, 237 billion yuan of 1-year MLF will mature, and the market is watching whether the central bank will cut interest rates. The central bank's monetary policy operations are stable, supporting the steady recovery of economic data. It is expected that in the second half of the year, there may be a possibility of reserve requirement ratio cuts and interest rate cuts to cope with the accelerated pace of local government bond issuance. China Everbright Fixed Income Research Report believes that the probability of lowering MLF interest rates is limited, and the necessity and urgency of lowering interest rates are not high at present. Commercial banks' net interest margins have fallen to historical lows, and a rate cut may bring greater pressure on net interest margins