China set for reverse repo
Chinese central bank announced massive liquidity injection.
OCBC Treasury Research noted:
Chinese central bank announced massive liquidity injection through weekly reverse repo operations this morning. Total CNY395bn reverse repo will be conducted today including CNY290bn 7-day reverse repo and CNY105bn 28-day reverse repo. The move is aimed to alleviate the month end funding demand. As a result of massive liquidity injection, China’s interbank 7-day repo rate fell significantly to about 2% in the opening.