PBoC Conducts 7-Day Reverse Repos at 1.8%, Auctions 2-Year Bonds at 1.99% Yield

The People's Bank of China (PBoC) conducted open market operations on Wednesday and Thursday, injecting 3 billion yuan through 7-day reverse repos at an interest rate of 1.8% each day. This move comes as part of its liquidity management efforts, with a net 7 billion yuan being drained from the market as 10 billion yuan of existing repos come due each day. Additionally, the China Finance Ministry auctioned 2-year bonds at a 1.99% yield, as reported by traders. Amidst these financial maneuvers, the PBoC is expected to keep a key policy rate unchanged during its upcoming rollover of maturing medium-term loans on Friday, in the context of uncertainties around the Federal Reserve's easing policies.