At the open on Sept. 14, DR007 fell to 1.4114%, close to the 1.4% policy rate.
The PBOC skipped a 7-day reverse repo and injected CNY504 bln via overnight
reverse repos. DR007 is China’s short-end money-market anchor; a wide positive
spread versus the PBOC 7-day reverse repo signals funding tightness (potentially
prompting PBOC injections), while a narrow gap indicates ample liquidity.