Odds of RRR Cut Decline

With the Fed holding steady and not signaling a July hike, and the PBoC's targeted liquidity having a positive effect, the odds of a RRR cut have declined.

The central bank inject 60 billion in liquidity on Monday.

7-day repo rates have been coming down, Shibor steady.

Although the central bank appears to have avoided another cash crunch, the asymmetric monetary policy in the U.S. and China will keep the pressure on throughout 2016.

DTCJ: 6月资金面“魔咒”破灭，降准概率下降！