PBOC Refrains From Liquidity Injections

The PBOC matched liquidity injections with maturities, the thirteenth straight day of matching maturities, while the bank hasn't injected funds since February 25. The overnight repo rate is 9.3bps higher, but below last week's peak, last at 1.793%. 7-day repo rate has declined 13.5bps to 1.8655% after jumping as high at 2.75% on Monday.

• Bond futures are higher with equity markets rapidly losing ground. 10-year futures gapped higher at the open and are broaching fresh highs, last up 0.25 at 97.465, 2-year future up 0.06 at 100.18.
• The PBOC is unlikely to raise rates and tighten policies to manage imported inflation, despite some emerging economies including Turkey using rate hikes to stop their plunging currencies, the 21st Century Business Herald reported citing analysts.
• Elsewhere, there are reports doing the rounds that China will speed up coronavirus vaccination to offer free shots for its entire population having already dished out around 80m doses. There are separate reports that Hong Kong and Macau have paused use of the Biontech vaccination due to vial packaging issues.