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The market is expecting the PBOC to.....>

CHINA PRESS
CHINA PRESS: The market is expecting the PBOC to fill in the liquidity gap
created by the issuance of special treasury bonds through conducting 28-day
reverse repos or by cutting the reserve requirement ratio (RRR), the Shanghai
Securities News reported. Many analysts believe relying solely on reverse repo
operations may not be enough to fill the funding gap, and providing long-term
low-cost funds via RRR cuts to banks can help drive down the bond yield to a
reasonable level, the newspaper said. The PBOC yesterday restarted injecting
liquidity through 14-day reverse repos for the first time since February and
also cut the operation rate by 20 bps, the newspaper added. 

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