--- title: "Holiday funds do not close! Please keep this short holiday arbitrage strategy handy" type: "News" locale: "en" url: "https://longbridge.com/en/news/281294904.md" description: "Holiday funds do not stop, the A-shares market will be closed for three days during the Qingming Festival, and investors can use this window for arbitrage. The operational suggestions include selling reverse repos on April 2nd and buying the government bond policy bank bond ETF (511580) on April 3rd, enjoying bond coupon income and capital gains. This ETF has good liquidity, a large scale, supports T+0 trading, high capital efficiency, and a pledge rate of 103%, allowing for financing to enhance returns. Risk warning: Investment should be cautious, and the strategy does not guarantee the safety of the principal" datetime: "2026-04-01T03:19:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281294904.md) - [en](https://longbridge.com/en/news/281294904.md) - [zh-HK](https://longbridge.com/zh-HK/news/281294904.md) --- # Holiday funds do not close! Please keep this short holiday arbitrage strategy handy With the Qingming holiday approaching, the A-shares market will be closed for three days from April 4th to 6th, and will resume normal trading on Tuesday, April 7th. For on-site funds, this is considered a relatively good "money-making" window—low operational thresholds and flexible liquidity, which do not occupy equity positions while enhancing returns during the holiday period. **【How to operate specifically?】** Step 1: Sell reverse repurchase on April 2nd Before 15:30, sell 1-day government bond reverse repurchase (GC001, code 204001R-001, code 131810). Interest calculation rule: Funds are actually occupied for 4 days, and interest is also for 4 days. Step 2: Buy interest rate bond ETF on April 3rd: In the morning, the reverse repurchase funds will automatically arrive (available but not withdrawable), and you can buy the government bond policy bank bond ETF from China Merchants (511580). Enjoy bond coupon income and potential capital gains. Risk warning: This strategy is an operational suggestion based on trading rules and does not guarantee that the principal will not suffer losses. Funds have risks, and investment should be cautious. **【What are the highlights of the government bond policy bank bond ETF from China Merchants (511580)?】** **Highlight 1: Best liquidity and largest scale among similar 0-3 year policy bank bonds** The latest scale of the ETF is 5.367 billion yuan, leading in scale among similar products, with an average daily trading volume of 2 billion yuan this year, indicating very ample liquidity (data source: Wind, data as of March 31, 2026). Large scale and good liquidity result in small bid-ask spreads and high entry and exit efficiency, making it convenient for institutions and large investors to operate. **Highlight 2: Pure cash alternative, T+0 same-day turnaround trading, maximizing fund efficiency** Based on the T+0 trading mechanism, the government bond policy bank bond ETF can be sold on the same day it is bought, with funds immediately available; cash redemption in the primary market allows for cash withdrawal instead of bonds, leading to faster fund recovery. When buying 511580 with an empty stock account, switching to sell when needing to buy stocks can be seamlessly completed in two steps, ensuring no trading opportunities are missed. **Highlight 3: Pledge rate of 103%, high fund utilization, and leverage enhancement without compromise** The shares of 511580 held can be pledged for storage, with a pledge conversion rate of about 103% (data source: China Securities Depository and Clearing Corporation, data as of March 31, 2026), equivalent to financing about 103 yuan for 1 share of ETF. After financing, buying ETF again can enhance returns with leverage (taking GC007 interest rate of 1.6% as an example, holding for 7 days can enhance returns by about 4.75 basis points, approximately 0.0475%). The credit risk of government bonds and policy bank bonds is extremely low, ensuring the safety of the pledge **Highlights 4: Short Duration, Relatively Low Volatility** The index focuses on 0-3 year maturity bonds, with a modified duration of only 1.23 years and a yield to maturity of 1.26% (data source: Wind, data as of March 31, 2026). Over the past decade, annual returns have been positive, with an average annualized return of 2.91% and an annualized volatility of 0.64% (data source: Wind, data range 2016-2025). The volatility is relatively low (the annualized volatility of the bond fund index is 1.28%). **【Comparison with Common Liquid Money Management Tools】** **Compared to money market funds, the China Merchants CSI Treasury and Policy Bank Bond ETF (511580)** has significant advantages in terms of yield and trading flexibility: Higher returns, especially in recent years as risk-free interest rates have declined, with an average annualized return of 2.41% over the past three years, significantly higher than the money market fund index at 1.66% (data source: Wind, as of March 31); Money market funds cannot be pledged, while the ETF shares held by 511580 can be pledged for secondary use of funds, making trading more flexible and a strong alternative to money market funds. **Compared to short-term bond ETFs, the China Merchants CSI Treasury and Policy Bank Bond ETF (511580)** excels in quality and liquidity: In terms of issuing entities, both have extremely low credit risk— the top ten component bonds of 511580 are all treasury bonds, with transparent holdings; short-term bond ETFs mainly hold short-term bonds, which are slightly inferior in quality to treasury and policy bank bonds; The core advantage is that 511580 can be pledged, while short-term bond ETFs do not have this feature. 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