CHINA: Central Bank Injects CNY403.5bn via OMO
As expected and ahead of the Lunar New Year break the PBOC continues to inject liquidity, today adding further 14-day reverse repo. This takes the total injection this week alone to almost CNY650bn, with sizeable maturities still to come this week.
- The PBOC issued CNY78.5bn of 7-day reverse repo at 1.4% during this morning's operations.
- The PBOC issued CNY400bn of 14-day reverse repo during this morning's operations.
- Today's maturities CNY75bn.
- Net liquidity injection CNY403.5bn.
- 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 1.55%.
- The China overnight interbank repo rate is at 1.35%, from the prior close of 1.34%.
- The China 7-day interbank repo rate is at 1.47%, from the prior close of 1.57%.
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CHINA: Central Bank Injects CNY36.1bn via OMO
A modest injection to start the week as repo rates remain contained and the maturity schedule for the week ahead modest. There appears at this stage no major impacts from the significant liquidity withdrawal last week.
- The PBOC issued CNY86.1bn of 7-day reverse repo at 1.4% during this morning's operations.
- Today's maturities CNY50bn.
- Net liquidity injection CNY36.1bn.
- 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 1.42%, from prior close of 1.47%.
- The China overnight interbank repo rate is at 1.27%, from the prior close of 1.28%.
- The China 7-day interbank repo rate is at 1.52%, from the prior close of 1.50%.
MNI: CHINA PBOC CONDUCTS CNY86.1 BLN VIA 7-DAY REVERSE REPO MON
- CHINA PBOC CONDUCTS CNY86.1 BLN VIA 7-DAY REVERSE REPO MON
CNH: USD/CNY Fixing Adds To USD/CNH Downside Momentum
The USD/CNY fix made another fresh low today, 7.0108, versus 7.0128 on Friday. The fixing error was slightly tighter at +262pips, versus +295pips on Friday. The continued downtrend in the fixing is likely to help reinforce USD/CNH weakness. This pair is back under 6.9670 in latest dealings, challenging recent lows of 6.9664. Broader USD is sentiment is firmly on the backfoot (BBDXY index off 0.20%) as earlier headlines crossed that Fed Chair Powell was the subject of a US Federal Prosecutor probe. A fresh break lower in USD/CNH will bring 6.9500 into focus.
