The China Securities Daily is getting some attention at the moment. They cite a brokerage firm that says the PBOC could lower the reserve requirement ratio as soon as this month. China 10-year yields are down 5 bps to 2.85%.
That comment follows a statement from Premier Li Keqiang on Friday. He said China will cut the RRR at an appropriate time to strengthen support for the real economy, especially for small- and medium-sized enterprises. I haven't seen the Securities Daily article, but the analysts are likely reading through that comment.
In other China news, Ningbo city shut its schools due to a covid-19 outbreak. If the omicron variant is truly more-transmissible than delta, then I worry about China's strategy of covid-zero. It's already an exceedingly difficult virus to suppress and this may even break China's capacity to stop it.
