PBOC Injects Liquidity For First Time Since March

The PBOC injected a net CNY 20bn into the financial system today, the first injection since March. Repo rates are lower with the overnight repo rate dropping below 2% There had been several commentary pieces from state media suggesting there could be liquidity injections in June but markets had to wait a long time for those to come to fruition. While the injection is small in standalone terms it indicates that the PBOC stands ready to adjust liquidity conditions if needed. While repo rates had been creeping higher they weren't at levels high enough to give the central bank concern, unlike the spike in January heading into LNY. The 20 day rolling average of DR007 has hovered just above the PBOC's 7-day repo rate (2.20%) for the past 11 days.