On Aug. 19 the PBOC set 7-day reverse repo injections at zero per primary dealers’ demand — the seventh consecutive trading day with no 7-day injections since Aug. 11. The four overnight reverse repo operations previewed on Aug. 12 were all conducted, but daily volumes stayed below the 600 billion yuan cap. Dongfang Jincheng chief macro analyst Wang Qing said liquidity has been relatively ample since Aug. 14, leaving daily overnight reverse repo demand under the cap. From Aug. 14–19, DR001 and D

On Aug. 19 the PBOC set 7-day reverse repo injections at zero per primary dealers’ demand — the seventh consecutive trading day with no 7-day injections since Aug. 11. The four overnight reverse repo operations previewed on Aug. 12 were all conducted, but daily volumes stayed below the 600 billion yuan cap. Dongfang Jincheng chief macro analyst Wang Qing said liquidity has been relatively ample since Aug. 14, leaving daily overnight reverse repo demand under the cap. From Aug. 14–19, DR001 and DR007 averages ran below the 1.4% policy rate and declined versus earlier levels, which Wang links to August’s lighter fiscal-revenue and tax-payment flows and only mild fiscal-driven cash withdrawals. The PBOC is likely to resume 7-day reverse repos on Aug. 20 to signal the policy rate and stabilise expectations, and to restart overnight reverse repos near month-end — a shift the PBOC says will permit more precise liquidity adjustments and should support DR001 stability.