The Central Bank of the Republic of China published its May 2026 financial market operations report, showing stronger trading activity across the money, bond and derivatives markets, while short-term funding costs remained broadly stable. Daily interbank lending rose 18.5% year on year to CNY 417.3 billion and interbank bond repo turnover increased 8.1% to CNY 7.4 trillion. The weighted average DR001 rose 5 basis points month on month to 1.28%, DR007 was broadly unchanged at 1.35%, and the interbank overnight repo rate R001 averaged 1.32%. In the bond market, government bond net financing totaled CNY 1.22 trillion in May, down CNY 234.98 billion from a year earlier, while corporate bond net financing increased to CNY 168.0 billion. Bonds in custody reached CNY 202.6 trillion and cash bond turnover rose 8.8% to CNY 36.7 trillion. At month-end, the 10-year government bond yield stood at 1.71%, the 10-year to one-year government bond spread narrowed to 55 basis points, and the spread between three-year AAA medium-term notes and three-year government bonds narrowed to 36 basis points. Panda bond issuance reached CNY 133.0 billion in the first five months of 2026, and 17 new foreign institutions entered the interbank bond market. The report also showed CNY 5.0 trillion of renminbi derivatives turnover in the interbank market, up 18.6% year on year, and CNY 9.9 trillion of government bond futures turnover, up 29.4%, with open interest rising 54.1%. Commercial bill acceptance totaled CNY 4.4 trillion and discounting CNY 3.7 trillion, with small and micro enterprises accounting for 93.5% of bill issuers and 96.4% of discounting firms. The renminbi closed at 6.7685 against the USD, up 0.96% from the previous month-end, while company credit bond ownership and trading remained concentrated, with the top 50 investors holding 53.9% of outstanding company credit bonds and accounting for 60.1% of trading.

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