On June 29 the People’s Bank of China conducted a 300 bln yuan overnight reverse repo, its first such operation. The repo rate was not disclosed. Market participants say the move tightens fine-grained short-end liquidity management and signals PBOC support for quarter-end liquidity. Dongfang Jincheng chief macro analyst Wang Qing said the overnight repo is mainly a supplement to the 7-day reverse repo, that the operational model will mature and overnight operations could become routine with rate

On June 29 the People’s Bank of China conducted a 300 bln yuan overnight reverse repo, its first such operation. The repo rate was not disclosed. Market participants say the move tightens fine-grained short-end liquidity management and signals PBOC support for quarter-end liquidity. Dongfang Jincheng chief macro analyst Wang Qing said the overnight repo is mainly a supplement to the 7-day reverse repo, that the operational model will mature and overnight operations could become routine with rates published when appropriate. CITIC Securities chief economist Mingming said the step reinforces the existing policy-rate positioning for the 7-day reverse repo.