Interbank lending turnover falls 21.9 percent in June 2026
The People's Bank of China has released its Financial Market Report for June 2026, detailing turnover and yield movements across money, bond, and stock markets. Interbank lending averaged RMB329.22 billion daily, while 10-year government bond yields closed at 1.73 percent.
Interbank turnover contracts as yields edge higher
In June 2026, interbank lending averaged RMB329.22 billion daily, marking a 21.9 percent decrease year on year, while bond repo turnover reached RMB6.2 trillion daily, down 21.0 percent.
The overnight repo rate between depository institutions (DR001) recorded a monthly weighted average of 1.38 percent, up 11 basis points month on month.
The 7-day rate (DR007) stood at 1.45 percent, rising 10 basis points.
Meanwhile, net government-issued bond financing fell to RMB768.33 billion, whereas enterprise bond issuances raised RMB401.16 billion.
Total outstanding bonds in custody reached RMB205.0 trillion by the end of the month, accompanied by cash bond transactions totaling RMB45.7 trillion, a 19.9 percent increase from the previous year.
Equities and derivatives post mixed performance
RMB derivatives trading surged 69.6 percent year on year to RMB7.8 trillion, while CGB futures turnover climbed 52.2 percent to RMB8.6 trillion.
The USD/CNY exchange rate closed at 6.7852, showing a 0.25 percent depreciation of the RMB, and the CFETS RMB Index rose 1.92 percent to 102.59. Stock markets saw modest gains, with the SSE Composite Index up 0.6 percent at 4,094.4 points and the SZSE Component Index rising 4.0 percent to 16,205.6 points.
Gold trading reached 6,491.2 tonnes on the SGE and 13,000 tonnes on the SHFE.
Liquidity flows shift beneath the surface
The data reveals a stark division where traditional interbank lending receded while derivatives and futures surged.
These diverging trends signal portfolio reallocation by institutional participants amid shifting yields.
Overall, the numbers reflect strategic hedging rather than any underlying funding distress.
Source: Financial Market Report (June 2026)
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