PBOC to Fill CNY2 Tln Liquidity Gap by MLF and OMOs: Times

The PBOC will flexibly use medium-term lending facilities, open market operations and other tools to inject liquidity with different maturities to ensure the CNY2 trillion gaps in November are "smoothened over," the Securities Times said. A total of CNY1 trillion reverse repos are maturing this week, and another CNY1 trillion MLF will come due in the second half of November, the official securities newspaper said, noting that the overall scale of local government bond issuance is close to CNY900 billion in November. Though the PBOC is less likely to cut RRR, it may roll over maturing MLF and increase reverse repos, the newspaper said. Increased fiscal spending by yearend is expected to release CNY1.89 trillion and CNY3.81 trillion to the inter-bank market in November and December, respectively, which can fully cover the impact of gov bond issuance, the newspaper said.