China's bond futures mostly fell at midday on September 8, with the main 30-year contract up 0.03% at 116.500 yuan, while the 10-year, 5-year and 2-year main contracts fell 0.03%, 0.02% and 0.01% to 109.405 yuan, 106.440 yuan and 102.572 yuan, respectively. Jiemian News reported that China's central bank carried out a 500 billion yuan buyout reverse repo operation on September 7, matching the 500 billion yuan of three-month buyout reverse repos due in September. The article said the central bank also conducted no seven-day reverse repo operations in early September, while market participants viewed the move as an effort to avoid major market rates deviating too far below the policy rate corridor.
Bocheng Futures said recent macro data showed weak domestic demand and that policy support for expanding demand could keep China's monetary and credit conditions biased toward easing over the medium to long term, supporting bond futures prices. It added that rising expectations for a U.S. Federal Reserve rate hike and the market's wait for the September policy meeting were limiting upside momentum, and said bond futures may trade in a range in the short term.
In ETF trading, Bosera 30-Year Treasury Bond ETF turned over 3.19% intraday on volume of 688 million yuan. As of September 7, its average daily turnover over the past year was 2.873 billion yuan. The ETF's latest size reached 21.541 billion yuan, a one-year high, and its latest share count rose to 198 million shares, also a one-year high. It has recorded net inflows for four straight days, with the largest single-day inflow at 197 million yuan and cumulative inflows of 567 million yuan over the period.