PBOC to Conduct CNY1 Trillion 3-Month Outright Reverse Repo on July 6

The People’s Bank of China (PBOC) said it will conduct a CNY1 trillion outright reverse repo operation on July 6, 2026, using a fixed-quantity, rate-tender method with multiple-price allotment. The tenor is three months (91 days), with maturity on October 5, 2026 (rolled if it falls on a holiday), according to Jiemian News. The operation implies a net injection of CNY200 billion, as CNY800 billion of three-month outright reverse repos mature this month, ending three consecutive months of reduced rollovers. Wang Qing, chief macro analyst at Dongfang Jincheng, said recent rises in market rates—including DR001 and DR007 moving close to the 1.4% policy rate and higher yields on one-year AAA negotiable certificates of deposit—reduced the need to keep shrinking such operations. Zhaolian’s chief economist Dong Ximiao said quantitative tools may be the main lever for moderately easier policy in the second half, noting the loan prime rate (LPR) has been unchanged for 13 months and that a reserve requirement ratio cut remains possible to replenish liquidity amid peak government bond supply in the third quarter.