PBOC increased liquidity today, using both 7-day and 14-day reverse repos

On Wednesday, the People's Bank of China (PBOC) injected funds into money markets today, increasing liquidity, using both 7-day and 14-day reverse repos

At the yuan fix today, the Chinese central bank injected funds using the 14-day instruments.

In Open Market operations (OMOs), the PBOC inject 90bn yuan through 7-day reverse repos and 50bn with 14-day reverse repos

Headlines via Bloomberg:

PBOC using 14-day reverse-repurchase agreements for the first time since February

Amid speculation policy makers are looking to increase the use of more expensive, longer-term funding to cool a bond rally.

Liu Changjiang, a bond analyst at Soochow Securities Co. in Shanghai, noted, “"The offering of long-term funds seems to be sending a signal to warn market participants not to get excessively leveraged. The follow-up impact hinges on what the PBOC plans to do next - whether it will continue to offer 14-day reverse repos and any other policies - so the market can gauge its determination."