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1yr MLF Held Steady But Big Net Injection Of 600bn Yuan

CHINA RATES

As expected, China's 1yr MLF rate was held steady 2.5%. We did see a larger roll over though of 1.45trln yuan. This compared to estimates of 950bn yuan. This sees a net injection of 600bn yuan via the 1yr MLF, the largest since Dec 2016. Subsequent headlines have crossed that the PBoC that the MLF injection combined with lower required reserves, will offset the impact of new government bond issuance and tax payments (BBG).

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