PBoC 7-day reverse repo operation is at zero for the third consecutive day

A zero seven-day reverse repo operation means maturing injections are not being rolled, so the PBoC is in net drain by default rather than by announcement; consecutive zero days turn that passive unwind into a read on intent. The established pattern with this framework is that the authorities tolerate maturities lapsing when interbank liquidity is judged ample, typically when the seven-day fixing is trading comfortably at or below the policy rate, and resume operations when funding shows strain. The tell that separates routine housekeeping from a deliberate tightening signal is the spread of DR007 to the seven-day OMO rate: a drain that leaves the fixing anchored is liquidity management, a drain that pushes it through the policy rate invites a response. Seasonality matters here, as quarter-end, tax-payment windows and government bond issuance have historically prompted the PBoC to re-open injections, so the next operations around those dates are the cleaner read on stance. In past episodes, sustained zero operations have also preceded or accompanied shifts in the MLF and reserve-requirement toolkit, which carry the heavier signal. As an operational print rather than a rate decision, the market transmission runs through front-end CNY funding and onshore bond futures rather than the currency directly.