Banks drew the central bank's full CNY1tn overnight reverse repo ceiling for a second day with the 1.40% policy rate untouched. The five-year government bond yield hit a record 1.34%, and weak yuan fixings are leaning against appreciation.
USD/CNY has fallen to about 6.66, the strongest yuan since early 2022, even as the PBOC floods the overnight window at a 1tn-yuan daily cap. Source
The People's Bank of China (PBOC) reported a record net injection of about CNY1.01tn ($151bn) on Tuesday, but the headline mostly reflects a change in take-up. Banks drew the full CNY1tn overnight reverse repo ceiling for the first time, along with CNY412bn of seven-day funds at 1.40%, according to the PBOC's open market operations. Overnight money rolls back the next day. Only the jump from Monday's CNY398bn counts as a net add.
