PBOC sets USD/ CNY mid-point today at 6.7518 (vs. estimate at 6.7463)

• USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
• CNH is the offshore yuan. USD/CNH has no restrictions on its trading range.
• A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
• The previous close was 6.7425

People's Bank of China sets the onshore yuan at a weaker rate against the USD than expected.

The PBOC inject 10 yuan via 7 day reverse repos (rate remains at 2.1%)

• 10bn yuan mature today
• thus a net neutral in OMOs today

Pps. MLF funds injection today, PBOC has no inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term worries right now:

• China 200bn CNY MLF injection, 1 year, rate unchanged