- People’s Bank of China reverse-repurchase agreements in open-market operations today
- First time in a year
- Directly added short-term funding to the market
- Injected CNY50 billion in seven-day instruments
- The bank didn’t explain its decision … but there concerns about funding availability in the interbank system, especially with the approach to the high-demand Lunar New Year holiday
- The PBOC typically begins increasing short-term funding in the weeks leading up to the holiday to avoid market disruptions from excess demand for withdrawals for travel and entertainment
Via MNI
