China’s Finance Ministry Sets 1-Month Treasury Cash Deposit Rate at 1.30%

The 12-basis-point drop in the one-month treasury cash deposit rate signals that commercial banks are paying less to absorb short-term fiscal funds, a shift worth noting for anyone tracking how liquidity is priced at the front end of China's money market. Because the Ministry of Finance did not disclose the size or settlement date, the move is a rate signal rather than a clear read on system liquidity. Whether this softer deposit yield persists into the next operation is the open question, and it matters most for banks that rely on these placements for short-term funding.