The MNI China Liquidity Survey...........>

CHINA DATA: The MNI China Liquidity Survey (published 07:00 GMT on MNI Mainwire)

showed liquidity conditions improving significantly in January, following the

extreme tightness seen in the December survey. This shift in the survey

liquidity measure is consistent with the record liquidity injection by the PBOC

two weeks ago. Indeed, the survey has a good track record of identifying when

additional policy or liquidity measures are likely, when extreme readings are

reached. Despite the more ample liquidity conditions, the survey shows that

expectations for the economic outlook remain depressed, with a majority still

expecting a deterioration in economic conditions. Another interesting

development in the survey is participants (all local Chinese inter-bank traders)

view clarity on PBOC policy as improving. A majority also see the 10-year CGB

yield moving lower over the next 3-months.