According to the announcement of the People's Bank of China (hereinafter referred to as the "central bank"), in order to maintain sufficient liquidity in the banking system, on May 6, 2026, the central bank will carry out a 300 billion yuan buyout reverse repurchase operation through fixed quantity, interest rate bidding, and multi price bidding, with a term of 3 months (91 days) and a maturity date of August 5, 2026 (postponed in case of holidays). Data shows that in May, 800 billion yuan of 3-month buyout reverse repurchase expired, which means that the 3-month buyout reverse repurchase will continue to be contracted, with a scale of 500 billion yuan. This is the third consecutive month that the central bank has reduced its volume and continued to conduct a 3-month buyout reverse repurchase, with the scale of the reduction expanding by 200 billion yuan compared to the previous month. Wang Qing, Chief Macro Analyst of Oriental Jincheng, stated that the 3-month buyout reverse repurchase had a net drawdown for the third consecutive month in May, and the net drawdown scale had further expanded, consistent with the recent short-term and medium-term liquidity operations mainly focused on "closing water", mainly due to the further evolution of market liquidity towards a loose direction since April. The recent 'water withdrawal' operations by the central bank have released signals to guide the stability of the capital market and avoid excessive downward deviation of major market interest rates from policy rates, which helps to stabilize market expectations. But this does not mean a change in the policy tone of maintaining sufficient market liquidity, it is more of a peak shaving and valley filling nature. As can be seen, the Central Politburo meeting on April 28th also explicitly proposed to enhance the forward-looking flexibility and targeted nature of monetary policy, and maintain sufficient liquidity. ’”Wang Qing said. Looking forward to May, Wang Qing believes that, in the short term, the net financing scale of government bonds may increase significantly after the release of special treasury bond in May. In addition, the amount of credit in May will also increase to a certain extent. There is an endogenous tightening trend in the liquidity of the banking system, and the interest rates in the main medium and short end markets are expected to bottom out and rise. (Looking into the New Era)