PBOC conducts CNY541B overnight reverse repo at 1.25%, net drains CNY515B

The scale of the net drain is the signal here: a CNY515 billion withdrawal against a modest CNY541 billion operation leaves little doubt the PBOC is comfortable letting short-term liquidity tighten rather than easing. For domestic funding desks, that means overnight rates stay anchored near 1.25% but with less cushion, and any repeat of drains this size would sharpen the distinction between routine management and a deliberate squeeze. Whether the central bank follows with larger injections as quarter-end approaches is the open question worth tracking.