Free Trial

PBOC Injects Liquidity For First Time Since March

CHINA RATES

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.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.