China’s Central Bank to Conduct 1.2 Trillion Yuan Outright Reverse Repo on Oct 8

The signal here is the instrument rather than the size: an outright reverse repo with a three-month term injects medium-duration liquidity rather than the short-term funding central banks usually fine-tune. That matters for how banks and dealers plan quarter-end and year-end balance sheets, since it extends the horizon over which funding is known. Whether the PBOC keeps leaning on three-month outright operations, rather than shorter tools, is the open question for anyone tracking Chinese liquidity conditions.