PBoC keeps 7-day reverse repo operations at zero, but injects CNY 566bln via overnight reverse repos

Shifting the injection from the 7-day tenor to overnight while skipping the standard 7-day operation is a familiar PBoC pattern: it supplies cash without committing it across the policy-tenor window, which has historically signalled an intent to keep money conditions on the tight side of neutral while still smoothing short-term funding. In comparable episodes, this kind of tenor substitution has tended to cluster around month-end, quarter-end, tax payment periods or heavy government bond issuance, when the authorities want to cap a funding spike without softening the signal rate itself. The transmission runs through the interbank repo complex, DR007 relative to the 7-day OMO rate, rather than through any change in the policy rate, and the 7-day rate remains the operative anchor. The distinction worth drawing is between a defensive bridge ahead of a known liquidity drain and a deliberate tilt away from the 7-day tenor, which in past stretches has accompanied phases of curbing leverage in the bond market. What matters next is whether the 7-day operation resumes at the next session and at what size, the behaviour of DR fixings against the OMO rate, and any MLF or outright reverse repo operations later in the month. As a liquidity operation rather than a rate decision, the signal is about stance at the margin.