-
China’s PBOC 14-Day Repo Acts against Excessive Leverage
The People’s Bank of China (PBOC) conducted 14-day reverse repos on Wednesday for the first time since February. The move is another element in the wider battle to impose greater control on the markets and curb excessive leverage surrounding asset prices and the economy. After querying banks on the potential demand for 14-day reverse repos on Tuesday, the PBOC injected CNY90bn through the 7-day operation on Wednesday and an additional CNY50bn through the 14-day tender. The 14-day reverse repos were set at a rate of 2.70%, higher than the 7-day rates and overnight funds. On Wednesday, the 7-day rate hit the highest ... (full story)