The central bank conducts RMB290 billion of 7-day reverse repurchase at 3.35% and RMB105 billion of 28-day reverse repurchase at 3.60%. The rates remain unchanged for this round of operation. This is the largest single day injection on record.

After two consecutive weeks of net withdrawal, PBOC is back in net injection mode for the week. There is RMB199 billion of reverse repo and RMB10 billion central bank bills expiring this week. Today’s operation brings this week’s net injection to RMB206 billion.

The record injection today is necessitated by the fact that liquidity is tightened towards the month-end. Short-term repo rates and SHIBOR spiked yesterday, and almost reaching the levels we saw ahead of the Golden Week holiday.