PBOC: Average daily interbank lending turnover in September was RMB292.54 billion, down 30.5% year-on-year.

On October 26, central bank data showed that in September 2026, the average daily turnover of interbank lending was RMB292.54 billion, down 30.5% year-on-year; the average daily turnover of bond repurchase in the interbank market was RMB6.5 trillion, down 10.6% year-on-year. At the end of September 2026, the outstanding balance of interbank lending was RMB0.8 trillion, and the outstanding balance of bond repurchase in the interbank market was RMB11.0 trillion. In September 2026, net government bond financing was RMB1.53622 trillion, an increase of RMB346.96 billion year-on-year; net corporate bond financing was -RMB39.26 billion, a decrease of RMB52.9 billion year-on-year. At the end of September 2026, the custody balance of the bond market was RMB210.8 trillion. At the end of September 2026, the Shanghai Composite Index closed at 3,842.2 points, down 3.6% from the previous month; the Shenzhen Component Index closed at 12,887.6 points, down 8.0% from the previous month. In September 2026, the average daily turnover of the two markets was RMB1.81697 trillion, down 18.9% from the previous month. Full text as follows: Financial Market Operation in September 2026 I. Money Market Operation In September 2026, the average daily turnover of interbank lending was RMB292.54 billion, down 30.5% year-on-year; the average daily turnover of bond repurchase in the interbank market was RMB6.5 trillion, down 10.6% year-on-year. At the end of September 2026, the outstanding balance of interbank lending was RMB0.8 trillion, and the outstanding balance of bond repurchase in the interbank market was RMB11.0 trillion. In September 2026, the monthly weighted average interest rate of overnight pledged repo of interest rate bonds among banking deposit-taking financial institutions (DR001) was 1.38%, basically flat from the previous month; the monthly weighted average interest rate of DR007 was 1.40%, basically flat from the previous month; the monthly weighted average interest rate of overnight pledged repo in the interbank market (R001) was 1.40%, basically flat from the previous month. In September 2026, the daily average spread between DR001 and the PBOC's open market 7-day reverse repo operation rate was -2 basis points, and the daily average spread between R001 and DR001 was 1 basis point. Figure 1 Money Market Interest Rate Trend Figure 2 DR001 and PBOC Policy Rate, January-September 2026 II. Bond Market Operation In September 2026, net government bond financing was RMB1.53622 trillion, an increase of RMB346.96 billion year-on-year; net corporate bond financing was -RMB39.26 billion, a decrease of RMB52.9 billion year-on-year. At the end of September 2026, the custody balance of the bond market was RMB210.8 trillion. In September 2026, the cash bond market turnover was RMB37.6 trillion, up 0.4% year-on-year; the cash bond turnover rate in the interbank bond market was 16.8%, down 1.5 percentage points from the previous month; the bid-ask spread of the active 10-year government bond was 0.23 basis points. At the end of September 2026, the yield of the 10-year government bond was 1.68%; the yield spread between the 10-year and 1-year government bonds was 46 basis points, narrowed by 1 basis point from the previous month; the spread between the yield of 3-year AAA-rated medium-term notes and the yield of 3-year government bonds was 35 basis points (without excluding the impact of bond tax policy factors), narrowed by 8 basis points from the previous month. In the first nine months of 2026, cumulative issuance of panda bonds was RMB245.05 billion, and 35 new overseas institutions entered the interbank bond market. Figure 3 Government Bond Yield Trend Figure 4 Changes in the Government Bond Yield Curve in September 2026 III. Derivatives Market Operation In September 2026, the turnover of the RMB derivatives market in the interbank market was RMB7.4 trillion, up 48.7% year-on-year. At the end of September 2026, the closing price (average) of the 1-year FR007 swap rate was 1.43%, basically flat from the previous month. In September 2026, the turnover of the government bond futures market was RMB7.4 trillion, down 24.0% year-on-year. At the end of September 2026, the open interest of government bond futures was 957,000 lots, up 48.3% year-on-year; the closing price of the main contract of 10-year government bond futures was RMB109.4, basically flat from the previous month. IV. Commercial Paper Market Operation In September 2026, the amount of commercial drafts accepted was RMB3.9 trillion, and the amount discounted was RMB2.9 trillion. At the end of September 2026, the outstanding balance of commercial drafts accepted was RMB22.5 trillion, up 11.9% year-on-year; the outstanding balance of discounts was RMB17.9 trillion, up 15.5% year-on-year. V. Gold Market Operation At the end of September 2026, the Au (T+D) contract on the Shanghai Gold Exchange closed at RMB906.6 per gram, down 5.7% from the previous month. In September 2026, gold trading volume on the Shanghai Gold Exchange was 5,064.6 tons, up 7.6% year-on-year; gold trading volume on the Shanghai Futures Exchange was 15,000 tons, down 12.8% year-on-year. VI. Foreign Exchange Market Operation At the end of September 2026, the closing price of the RMB against the US dollar in the interbank foreign exchange market was 6.7053, an appreciation of 0.22% from the end of the previous month. The CFETS RMB Exchange Rate Index was 103.20, an appreciation of 1.31% from the end of the previous month. VII. Stock Market Operation At the end of September 2026, the Shanghai Composite Index closed at 3,842.2 points, down 3.6% from the previous month; the Shenzhen Component Index closed at 12,887.6 points, down 8.0% from the previous month. In September 2026, the average daily turnover of the two markets was RMB1.81697 trillion, down 18.9% from the previous month. VIII. Holder Structure of the Interbank Bond Market At the end of September 2026, there were 3,733 institutional members in the interbank bond market, all of which were financial institutions. From the perspective of bond holdings, the top 50 investors in corporate credit bonds held 54.1%, mainly concentrated in large state-owned commercial banks (proprietary), public funds (asset management), trust companies (asset management), etc.; the top 200 investors held 85.4%. In September 2026, from the perspective of trading scale, statistics by legal entity showed that the top 50 investors in corporate credit bonds in the interbank bond market accounted for 61.3% of trading, mainly concentrated in securities companies (proprietary), joint-stock commercial banks (proprietary), and fund companies (asset management); the top 200 investors accounted for 92.1% of trading. This article is excerpted from the "PBOC Official Website"; GMTEight editor: Huang Xiaodong.