1, credit growth level: the credit growth rate is highly correlated with the repo rate. That is, when the loan growth rate is relatively fast, the market funds will be tight and the repurchase rate will rise. Since macro-control, the growth rate of credit has gradually declined year-on-year, bank loans have been tightened to a certain extent, and bank funds have flowed into the money market in large quantities, resulting in a wide range of market funds and a continuous decline in market interest rates.

2. Foreign exchange holdings: Recently, due to the market expectation of RMB appreciation, a large amount of foreign exchange arbitrage funds have flowed into China, which has led to an increase in the supply of base money and further broadened the scope of funds.

3. After raising interest rates, savings deposits return: some banks have further relaxed funds, while the loan growth rate is still at a low level, resulting in an increase in the supply of funds in the money market.

4. After the interest rate increase, the value of money market funds is highlighted: the scale of fund sales has risen sharply, and a large amount of social funds have entered the money market through money market funds, resulting in oversupply of funds in the short-term market.

5. Inflation and interest rate hike expectations: It will not directly affect the short-term capital cost and short-term capital supply and demand, but will directly affect investors' investment strategies. The market generally believes that the inflation situation has not improved at least in the short term, so there is still a strong expectation of raising interest rates. Because of the low interest rate risk of money market investment tools, it is a safe haven for funds in the bond market. To this end, the bond market funds have gathered in the money market, further leading to the imbalance between supply and demand of market funds.

6. Direct stock financing: Recently, direct stock financing is at a standstill, which objectively causes this part of the funds participating in the primary market to turn to the short-term money market, and at the same time causes the demand for short-term financing in the money market to decrease.

Generally speaking, low interest rates reflect the abundant supply and demand of market funds.