After the implementation of the policy interest rate “anchor change”, the interbank deposit market ushered in new changes. In the first week of November, the yield of 1-year AAA interbank deposits fell below 1.40%. At one point, it fell to 1.385%, a record low, and the financing costs of newly issued bank deposits also declined. Some industry insiders believe that the normalization of overnight reverse repurchases has strengthened the market's expectations for the sustainability of low capital costs, compounded by a decrease in net deposit book financing at the beginning of the month and an increase in demand for cash management product allocation, which has jointly driven the decline in deposit yield. However, the interest rate spread between deposit yield and capital interest rate has narrowed markedly, and room for further decline may be constrained. In the future, we need to pay attention to the central bank's liquidity investment, deposit certificate renewal at maturity, and government bond payments.

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