Chinese Central Bank Undertakes 120B Yuan in 7-Day Reverse Repos on 8 June

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The People’s Bank of China (PBOC) has announced that it will undertake 120 billion yuan in 7-day reverse repo operations on Monday 8 June, for a net injection of 120 billion yuan given that no reverse repos are scheduled to mature on the same date.

Data from Wind indicates that during the week from 6 – 14 June a total of 220 billion yuan in reverse repos are set to mature – 70 billion yuan on 11 June and 150 billion yuan on 12 June.

500 billion yuan in medium-term lending facilities (MLF) were originally scheduled to mature on 6 June, but their maturation was delayed to 8 June, meaning a total of 720 billion yuan in PBOC open market instruments are set to expire altogether this week.

Wind data further indicates that PBOC conducted 70 billion yuan in 7-day reverse repos on 4 June, followed by 150 billion yuan on 5 June, for 220 billion yuan altogether.

Given the maturation of 670 billion yuan in reverse repos, this translated into a net withdrawal of 450 billion yuan from the market.

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