On October 25, 2024, the People’s Bank of China (PBOC) will conduct its tenth Central Bank Bill Swap (CBS) operation of the year, as reported on their official website. This initiative aims to enhance the market liquidity for perpetual bonds and support banks in issuing these bonds to supplement their capital. The operation will involve a total volume of 4.72 billion yuan and will be aimed at primary dealers in the open market through a fixed-rate quantity bidding process. The interest rate for this operation is set at 0.10%, with the settlement date also occurring on October 25, 2024, and maturity on January 25, 2025 (extended in case of holidays).
The CBS operation will exchange central bank bills described as “2024 Tenth Issue Central Bank Bill (Swap)” with a bond code of 2401010S. The total face value will match the operational volume of 4.72 billion yuan, and it will have a three-month term with a coupon rate of 2.35%. The effective date for this operation will also be October 25, 2024, with the maturity date on January 25, 2025 (again, extended if it falls on a holiday).
