PBOC Refrains From Liquidity Injection

The PBOC matched liquidity injections with maturities today, meaning the last liquidity injection was on Feb 25, with CNY 30bn being drained during that time. The overnight repo rate has jumped, last up 30bps at 2.0145%, the 7-day repo rate is more sanguine, last up 8bps at 2.0579%.

• Bonds futures are lower, 10-year future at sessions lows last down 0.220 at 96.94. Futures had been flat, with equity markets plunging, before China state funds stepped into buy equities, pushing markets back into positive territory and sapping support for fixed income.
• PBOC Deputy Governor Chen gave an interview to Yicai and said the central bank doesn't see any need for major stimulus support for China's economic growth for the next five years. He added the PBOC will keep money supply and the growth of total social financing on par with nominal GDP expansion, and that it will not use the yuan's exchange foreign rate as a tool to gain competitive advantage.