[Oriental Jincheng Wang Qing: The moderate shrinkage of MLF in October will not affect the smooth issuance of government bonds] On October 23, the People's Bank of China announced on October 23 that on October 26, 2026, the People's Bank of China will carry out a 700 billion yuan MLF operation with a fixed quantity, interest rate bidding, and multiple price winning bids, with a term of one year. Wang Qing, chief macro analyst of Oriental Jincheng, said that the shrinkage of MLF in October will help guide the moderate recovery of short-term interest rates in the money market and stabilize market expectations. Looking forward, including the arrangement to use the local government debt balance limit of 550 billion yuan, the fourth quarter will be the peak period of government bond financing this year, and the financing scale will increase by about 1.5 trillion yuan compared with the same period last year; in addition, 800 billion yuan of new policy financial instruments will continue to be released in the fourth quarter. These require the central bank to provide support in terms of liquidity.