OMO Injections Continue, PBoC Reportedly Monitoring Bank Bond Positions

The PBOC injected CNY270bn via reverse repo today, which follows yesterday's ample injection, as tax payment season drains liquidity.
• The 7 day weighted average interbank repo rate for depository institutions fell to 1.81% this morning
• The PBOC continues to maintain a cautious stance on bond markets following the ongoing move lower in yields recently. BBG noted earlier that the central bank is questioning banks on their bond holdings, as it continues to monitor developments in this space (see this link).
• Overnight moves across shorter to intermediate maturities moved lower in line with global trends.
• The move lower was not as rapid as other developed markets, most likely reflecting the ongoing impact of government policies
• 2 year yield decline 1.4bps to 1.59%
• 10 year yield declined 1.7bps to 2.253%
• 30 year yield declined 2.3bps to 2.461%
• With limited key data releases this week, the bond market will likely ebb and flow on global market movements and policy impacts (as per above), while we also await Third Plenum details.