What does it mean to raise the reverse repurchase rate of government bonds?

The increase in the reverse repo rate of national debt reflects the change of short-term capital supply and demand in the money market, that is, the supply of short-term capital decreases or the demand increases, which leads to the increase of short-term capital cost. This usually happens at the end of the quarter and the end of the year. For example, in March 2023, the highest rate of return on reverse repurchase of one-day government bonds in Shanghai Stock Exchange was 8.5% annualized, the lowest was 1.3% annualized, and 8.5% appeared on March 3 1.

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