PBOC Refrains From Injections

The PBOC matched liquidity injections with maturities, the twelfth straight day of matching maturities while the bank hasn't injected funds since February 25. The overnight repo rate is 7.5bps higher, but below last weeks peak. 7-day repo rate has declines 2.2bps to 1.98% after jumping as high at 2.75% yesterday.

• Bonds are higher, 10-year future up 2 ticks, a piece in China's financial press opined that the PBOC unlikely to tighten policy quickly, while risk assets have run into further headwinds after German Chancellor Merkel announced stricter lockdown measures to be in place over Easter.
• China's PM Li said yesterday that China's economic growth could exceed target this year, he said "We need to seek a balance between growth, income, and employment, and we cannot pursue economic growth based on high energy consumption and heavy pollution."
• Elsewhere ex-PBOC adviser Li says China faces the threat of foreign outflows later in the year as rising borrowing costs in the US drives investors out of emerging markets.