Policy

PBOC Skips OMO Thursday; Drains CNY140 Bln

Date Nov 02 2017 13:55:06

      BEIJING (MNI) - The People's Bank of China skipped its open market operations on Thursday, explaining that high fiscal spending last month had kept banking system liquidity at a relatively high level that could absorb the impact of maturing reverse repos.

     The lack of OMO today resulted in a net drain of CNY140 billion for the day, as a total of CNY140 billion in reverse repos mature on Thursday.

     This is the first trading day that the PBOC has drained liquidity via its open market operations since Oct. 13.

     The PBOC has drained a net CNY20 billion in liquidity so far this week.

     A total of CNY90 billion in reverse repos will mature the rest of this week, and a total of CNY207 billion in Medium-term Lending Facility (MLF) loans will mature on Friday.

     The CFETS-ICAP money-market sentiment index ended at 43 on Wednesday, significantly lower than 63 at Tuesday's close. The lower the reading the better the liquidity conditions in the interbank market.

     The benchmark seven-day repo average was last at 2.6971%, compared with 2.9402% on Wednesday.

Edited by SHMET

PBOC Injects CNY240 Billion Via OMOs Wed; Liquidity Unchanged

Date Nov 01 2017 13:39:38
     BEIJING (MNI) - The People's Bank of China injected CNY140 billion in seven-day reverse repos, CNY40 billion in 14-day reverse repos and CNY60 billion in 63-day reverse repos via its open-market operations Wednesday, Wind Information, a Shanghai-based financial data provider, said.

     This resulted in no net injection or drain for the day, as a total of CNY240 billion in reverse repos mature on Wednesday. The PBOC had added liquidity to the market each of the previous four trading days.

     The PBOC has injected a net CNY120 billion in liquidity so far this week.

     A total of CNY230 billion in reverse repos will mature the rest of this week, and a total of CNY207 billion in Medium-term Lending Facility (MLF) loans will mature on Friday.

     The CFETS-ICAP money-market sentiment index ended at 63 on Tuesday, the same as Monday's close. The lower the reading the better the liquidity conditions in the interbank market.

     The PBOC is expected to make an official announcement on its official

website about this morning's OMO around 9:45a.m., Beijing time.

     The benchmark seven-day repo average was last at 2.6500%, compared with 2.8344% on Tuesday.

Edited by SHMET

PBOC Injects Net CNY80 Billion Via OMOs Tuesday

Date Oct 31 2017 14:27:18

BEIJING (MNI) - The People's Bank of China injected CNY140 billion in seven-day reverse repos, CNY60 billion in 14-day reverse repos and CNY100 billion in 63-day reverse repos via its open-market operations Tuesday, Wind Information, a Shanghai-based financial data provider, said.

This resulted in a net injection of CNY80 billion for the day, as a total of CNY220 billion in reverse repos mature on Tuesday. The PBOC has injected net liquidity in 11 of the last 13 trading days and left liquidity unchanged the other two.

The PBOC has injected a net CNY120 billion in liquidity so far this week.

The PBOC has explained that it is trying to offset the impact of October tax payments and maturing reverse repos to maintain relatively stable liquidity.

    A total of CNY470 billion in reverse repos will mature the rest of this week, and a total of CNY207 billion in Medium-term Lending Facility (MLF) loans will mature on Friday.

Today is the third consecutive day the PBOC has injected liquidity via its new 63-day reverse repos, introduced last Friday.

The CFETS-ICAP money-market sentiment index ended at 63 on Monday, up from 56 at Friday's close. The lower the reading the better the liquidity conditions in the interbank market.

The PBOC is expected to make an official announcement on its official website about this morning's OMO around 9:45a.m., Beijing time.

The benchmark seven-day repo average was last at 2.6623%, compared with 2.9570% on Monday.

Edited by SHMET

PBOC Injects Net CNY40 Billion In OMOs Monday

Date Oct 30 2017 17:31:05

BEIJING (MNI) - The People's Bank of China injected CNY70 billion in seven-day reverse repos, CNY30 billion in 14-day reverse repos and CNY50 billionin 63-day reverse repos via open-market operations Monday, Wind Information, aShanghai-based financial data provider, said.

 This resulted in a net injection of CNY40 billion for the day, as a totalof CNY110 billion in reverse repos mature on Monday. The PBOC has injected netliquidity in 10 of the last 12 trading days and left liquidity unchanged the other two.

  The PBOC has explained that it is seeking to offset the effects of large tax payments and expiring reverse repos this month to maintain a stable liquidity level.

   A total of CNY800 billion in reverse repos will mature this week. And a total of CNY207 billion in medium-term lending facilities (MLF) loans will mature this Friday.

   The CFETS-ICAP money-market sentiment index ended at 56 on Friday, barely changed from 55 at Thursday's close. The lower the reading the better the liquidity conditions in the interbank market.

   The PBOC is expected to make an official announcement on its official website about this morning's OMO around 9:45a.m., Beijing time.

   The benchmark seven-day repo average was last at 2.6985%, compared with 2.8617% on Friday.

 

Edited by SHMET

PBOC Injects Net CNY90 Bln In OMOs Friday; New 2-Month Repos

Date Oct 27 2017 15:15:49

BEIJING (MNI) - The People's Bank of China injected CNY60 billion inseven-day reverse repos, CNY30 billion in 14-day reverse repos and CNY50billion in 63-day reverse repos via its open-market operations Friday, Wind Information,a Shanghai-based financial data provider, said.

This resulted in a net injection of CNY90 billion for the day, as a totalof CNY50 billion in reverse repos mature on Friday.

This is the first time that the PBOC used a two-month (63-day) reverse repos in its open market operations.

"The two-month reverse repos fills in the space between reverse repos and Medium-term Lending Facility  instruments , as the longest reverse repo before was 28-day, while the shortest MLF loan has a duration of three months," China International Capital Corporation said in a note on Thursday. "The aim is tostabilize liquidity condition rather than raise borrowing costs for the banking system."

The new type of reverse repos is in line with the PBOC's second quarter monetary policy report, which mentioned the central bank would research and introduce reverse repos with new durations to improve the stability of liquidity conditions and direct financial institutions to optimize the term structure of their assets and liabilities.

The PBOC injected a total of CNY390 billion in liquidity via reverse repos this week.

The CFETS-ICAP money-market sentiment index ended at 55 on Thursday, up from 45 at Wednesday's close. The lower the reading the better the liquidity conditions in the interbank market.

The PBOC is expected to make an official announcement on its official website about this morning's OMO around 9:45a.m., Beijing time.

The benchmark seven-day repo average was last at 2.6955%, compared with 2.9714% on Thursday.

 

 

Edited by SHMET
Page3of85