Sept. 8 morning DR007 fell to 1.3719%. The PBOC conducted a 1 bln yuan 7‑day
reverse repo, fully meeting primary dealers' demand. DR007 is a short-term
money-market rate and is treated as China’s short‑end rate anchor; the spread
between DR007 and the PBOC 7‑day reverse‑repo (policy) rate signals funding
tightness—DR007 materially above the policy rate implies money‑market stress and
may prompt PBOC liquidity injection, while DR007 at or below the policy rate
indicates ample funding.
