PBoC injects CNY 110bln via 7-day reverse repos with the rate at 1.40% and CNY 600bln in overnight reverse repos

Routine 7-day reverse repo operations at an unchanged rate are the standard daily liquidity management tool and carry little signal in isolation; the notable element is the addition of overnight reverse repos, a less frequently used tenor in this framework that has historically appeared when the authorities want to smooth very short-dated funding conditions or pre-empt a squeeze at the front of the money market curve. Operations of this kind have tended to cluster around seasonal liquidity drains, quarter and month ends, tax payment periods, and heavy government bond issuance windows, when the gap between the policy rate and interbank fixings has come under pressure. The size split matters: a large overnight leg alongside a conventional 7-day leg reads as bridging rather than easing, aimed at anchoring short rates to the policy corridor rather than injecting durable base money. The worth-watching tells are whether overnight operations persist over coming sessions, whether net injection or net withdrawal results once maturities are counted, and whether the interbank repo fixings converge back toward the policy rate. An unchanged 7-day rate confirms no policy signal is intended; any shift in that rate, rather than the volume, is what has historically repriced short-dated CNY rates and the onshore curve.