Also on Friday, CFETS set the basket rate for the yuan:
At 95.02
- up 0.38 on the week (i.e. from 94.64)
Friday was also notable for the introduction of 2-month reverse repos (63-day RRs) to open market operations from the People's Bank of China. this The eases liquidity pressure further, aimed at stabilising it in a more medium to longer time frame than the regular 7, 14 and 28-day operations.
OMOs today:
- inject 70 bn yuan via 7 day reverse repos
- inject 30 bn yuan through 14 day reverse repos
- inject 50 bn yuan through 63-day reverse repos
Net 40bn yuan injection.
This should be a huge, enormous week for OMOs ... there is more than 1 trillion yuan of maturing liquidity this week!
