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Looking At PBoC OMOs In The Coming Days

CHINA

Given the PBoC's recent guidance re: adjusting liquidity via OMOs & MLF, coupled with the fact that the drain of liquidity provided by month-end matters (namely bond issuance & tax payments) is now behind us, participants will closely watch the dynamics surrounding the PBoC's OMOs in coming days, particularly in the wake of the softer than expected official PMI readings witnessed over the weekend. Note that CNY200bn of OMOs are set to roll off each day this week (for a cumulative CNY1tn) after the Bank stepped in to meet month-end related liquidity demand.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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