Repo Rates Rise Despite Injections

The PBOC injected CNY 100bn via 14-day reverse repos for the second day, addressing the usual month-end liquidity concerns while the National Day holiday later this week has also increased liquidity demand. Repo rates are higher, the overnight repo rate up 28.25bps at 1.9325%, the 7-day repo rate is up 42bps at 2.52% which is near recent month end peaks. At the end of June the 7-day repo rate briefly spiked to 3.60%. Futures are lower, tracking a move in UST's that has seen bonds in Asia sell off.

• Elsewhere Sunac's dollar bonds rebounded after the company refuted claims it had asked for government support. The firm said it didn't submit a request to a local government for policy support and that its operations are normal.