Research Of The Relationship Between Open-Market Operations And Interbank Bond Market

In recent years, with the development of economic and finance, open— market operations becomes the most popular and useful money policy operation of China’s central bank. On the other side, interbank bond market as the place of the open-market operations, has became the dominating market of China’s bond market for almost 20 years development. So study the relationship between the open-market operations and interbank bond market, and research the way how open-market operations influent the interbank bond market is becoming a significant issue.In the first place, this article is in the base of studying and researching the literature of both Chinese and English. Through the fundamental of the open-market operations target system and influence, study the theory of influence of open-market operations to interbank bond market. Secondly, pick six economic variables of CPI,IVA,M2,INDX,NP,IBR to set a SVAR model with a constraint condition. Finally it comes to the conclusion as follow:the way open-market operations fulfill its influence to interbank bond market is interest channel, the specific influence is through repurchase and reverse repurchase to release and withdrawal the money of the market, the interest rate further to adjust the demand and supply of interbank bond market. The interest channel of open-market operations is that directly influent the interbank bond market in the short term, indirectly influent it through the money supply in the long term. On the other hand, interbank bond market is influenced by liquidity and inflation in the short run and by money supply and macro economic in the long run, Both influence of former one is bigger than later one.