MNI EXCLUSIVE: China-German Trade

Following five consecutive days of material withdrawal of liquidity, the PBOC has returned to injections this morning.   Money market levels have been reasonably steady the back end of last week, though modestly higher than recent averages. 

• The PBOC issued CNY119.9n of 7-day reverse repo at 1.4% during this morning's operations.
• Today's maturities CNY79.3bn.
• Net liquidity injects CNY41.6bn.
• 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 1.40%, from prior close of 1.41%.
• The China overnight interbank repo rate is at 1.41%, from the prior close of 1.35%.
• The China 7-day interbank repo rate is at 1.40%, from the prior close of 1.41%.

The USD/CNY fixing printed at 7.0856, against a 7.0836 outcome on Friday. The fixing error was slightly wider at -335pips (versus -315pips on Friday. Today's fixing shouldn't change the broader backdrop around the fixing bias, with the skew still appearing in favour of CNY. USD/CNH hasn't reacted much. We sit down a touch amid mixed broader USD trends, the pair last near 7.1235/40. Higher beta FX, AUD and KRW etc are rallying with the better equity tone (amid signs the US government shut down may end), while yen is weaker. CNH/JPY is back close to 20.61, eyeing a re-test of recent highs around 21.70. 

• CHINA PBOC CONDUCTS CNY119.9 BLN VIA 7-DAY REVERSE REPO MON