PBOC Intervenes to Halt Rate Increase in Advance of Holiday

June 2013: Inject ¥300 billion in one month
September 2013: Inject ¥290 billion in one day
December 2013: Inject ¥300 billion over three days
January 2014: Inject ¥255 billion in one day

Today's injection was on par with the one made last year around the time of Chinese New Year. Usually the PBOC waited longer to intervene. If the trust failure and cash crunch hangover from December are real issues, the PBOC will need to step in again before this month is out or early in February when business kicks off again.

PBOC injects RM123.2 billion through open market after rate spike
China's central bank will inject 255 billion yuan (RM123.2 billion) into the money markets through seven- and 21-day reverse bond repurchase agreements today, traders said, the largest single-day injection since February 2013.
The biggest was in September, but that move went down the memory hole because it came in advance of a potential cash crunch.

No comments:

Post a Comment