"Market's large-scale reverse repurchase temporarily paused, central bank safeguards liquidity during tax period."

Since April, fund interest rates have continued to decline, with short-term rates significantly lower than the policy rate level, and the market has entered a "super loose" state at one point. However, as the tax season approaches, there have been marginal changes in the pace of the central bank's open market operations. The previous consecutive days of "small-scale" reverse repurchase operations have temporarily come to an end, with the central bank moderately increasing the injection of funds to hedge against short-term fund fluctuations: On April 21, the central bank conducted a 50 billion yuan 7-day reverse repo operation, resulting in a net injection of 40 billion yuan; on April 22, the central bank continued with a 60 billion yuan reverse repo operation, with a net injection of 55 billion yuan on that day, and explicitly stated to "fully satisfy the demand of primary dealers." Market participants believe that at critical times during the tax season, the central bank's increase in injection size to "smooth out peaks and troughs" is helpful in smoothing out fluctuations in the money market and is seen as a "safeguard" measure for tax period liquidity.