The People’s Bank of
China Friday announcement:
- to inject 400 billion yuan into its banking system via outright reverse repos on June
16 - six months tenor
Last week the Bank injected 1 trillion yuan in reverere repos in the 3-month
tenor
- the injections aim to offset the record 4 trillion yuan in
interbank negotiable certificate of deposit (NCD) maturities this
month - upcoming
liquidity demands will likely require further injections by the
PBOC,
The background to this is that the PBoC has been very carefully managing the liquidity conditions this year
to aid the broad economy.
This article was written by Eamonn Sheridan at www.forexlive.com.