Futures Off Worst Levels

The PBOC matched maturities with injections today, repo rates rose with the overnight rate 18.9bps higher at 2.189% after dropping into yesterday's close while the 7-day repo rate is above the PBOC's prevailing level at 2.2016%, 5.16bps higher. Futures are slightly lower, but have come off worst levels seen slightly after the open, recovering as stocks come under pressure. As a reminder head of the PBOC's monetary policy department said yesterday China's market liquidity will remain basically balanced and it won't have big gap or large fluctuations in the coming months, while PBOC Deputy Governor Pan said China will stick to prudent monetary policy, won't impose flood-style stimulus measures and there's ample room for policy makers.