PBoC injects CNY 162bln in 7-day reverse repos and CNY 600bln in overnight reverse repos with rates kept at 1.40% and 1.25%, respectively

What distinguishes this operation is the composition: the 7-day reverse repo is the policy workhorse whose rate anchors short-term funding, while overnight reverse repos have been used more sparingly, typically as a temporary smoothing tool around liquidity pinch points such as quarter-end, tax payment dates, or heavy government bond issuance. The steady rates confirm that the signal is quantity rather than price, consistent with the long-running pattern in which the PBoC adjusts liquidity volumes frequently and policy rates only rarely, and where rate changes, when they come, tend to be telegraphed well in advance. The channels to watch are interbank fixing rates such as DR007 relative to the policy rate, and whether elevated overnight provision persists across sessions, since repeated recourse to overnight tools has in past episodes preceded either a seasonal squeeze or a more formal easing step such as a reserve requirement adjustment. Absent a rate move, offshore yuan and rates market reaction to operations of this kind has typically been limited to the very front end.