300 billion yuan of overnight reverse repos were injected by the People’s Bank of China on Monday in the instrument’s first use, surprising traders by omitting the interest rate.
157.5 billion yuan of seven-day reverse repos were added alongside it at an unchanged 1.4% rate, showing the new tool was introduced without altering the existing benchmark tenor.
The missing overnight rate left markets without fresh guidance on short-term borrowing costs, making the launch notable as much for what the PBOC did not disclose as for the liquidity it supplied.