The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
- USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
- CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
- A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
The previous close was 7.273
PBOC injects 753bn yuan via 7-day RR, sets rate at 1.5%
- 47bn yuan mature today, as do 1.45tln in 1 year MLF
Meanwhile, China’s long-term yields hit record lows on expectations of further People’s Bank of China easing ahead.
- 30-year treasury yield hit a record low of
1.99% - 10-year government bond yield fell
to 1.75% - A People’s Bank of China official said on Saturday that
China has room to further cut the reserve requirement ratio
