China’s Central Bank Injects 226B Yuan via Overnight Reverse Repo at 1.25%

The headline number understates the story: a large overnight injection alongside the biggest weekly net drain in three months points to liquidity management at the margin rather than a shift in stance. The PBOC appears to be smoothing short-term funding while still pulling cash out overall, a combination that matters most for domestic banks and yuan funding costs. Whether that net-withdrawal pace persists, and how overnight rates behave around it, is the open question worth watching.