PBOC Conducts Zero 7-Day Reverse Repos, Injects 258B Yuan Overnight

The shift toward overnight reverse repos, with the seven-day tool left unused, points to a liquidity backstop aimed at very short-term funding rather than a signal on policy direction. The modest weekly net injection suggests the PBOC is smoothing cash conditions around maturities, not easing in size. For yuan funding and short-end rates, the question worth watching is whether the overnight-heavy mix persists or the seven-day operation returns as the primary channel.