CHINA: Central Bank Injects CNY38bn via OMO

Onshore media suggests that in the week ahead, leading into next week's Lunar New Year, the PBOC could inject significant liquidity.  It began this week with modest injection as repo rates show signs of stabilization.  

• The PBOC issued CNY113bn of 7-day reverse repo at 1.4% during this morning's operations.
• Today's maturities CNY75bn.
• Net liquidity injection CNY38bn.
• The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
• The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.47%, from prior close of 1.46%.
• The China overnight interbank repo rate is at 1.25%, from the prior close of 1.27%.
• The China 7-day interbank repo rate is at 1.47%, from the prior close of 1.47%.