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PBOC conducts 700 billion yuan outright reverse repo to support liquidity
The People's Bank of China announced it will conduct a 700-billion-yuan outright reverse repo operation on Oct. 15 — fixed-quantity, interest-rate tender with multiple-price allotment, 6-month (182-day) tenor maturing April 15, 2027 — to keep banking-system liquidity ample.
Why it matters
The People's Bank of China announced that, to keep banking-system liquidity ample, it will conduct a 700-billion-yuan outright reverse repo operation on Oct. 15, 2026, using a fixed quantity, interest-rate tender and multiple-price allotment. The tenor is 6 months (182 days), maturing on April 15, 2027 (extended if it falls on a holiday).
Outright reverse repos have become one of the PBOC's standard tools for injecting medium- and long-term liquidity. A 700-billion-yuan, six-month operation signals the central bank is continuing to supply stable medium-term funding to the market after the quarter-end, supporting liquidity in the banking system.
Background data
PBOC financial statistics released Oct. 14 show aggregate social financing rose 27.46 trillion yuan in the first three quarters, 2.63 trillion less than a year earlier; broad money (M2) stood at 359.63 trillion yuan at end-September, up 7.2% year on year. Analysts say aggregate financing and M2 growth remain at a reasonable level above 7%, consistent with economic growth and price targets.
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