Weaker yuan against the USD today, biggest drop for it in 3 weeks
PBOC inject 100bn yuan through reverse repos in open market operations (OMOs) today:
- To inject 70 bn yuan through 7-day reverse repos
- To inject 20 bn yuan through 14-day reverse repos
- To inject 10 bn yuan through 28-day reverse repos
A 100bn injection today in money markets, but once maturing RRs taken into account the net is a 20bn injection
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Earlier today from China ...
Headlines via Bloomberg:
- Prudent policy good for efficient leveraging ... lowering debt via economic growth is the best way to deal with high leverage (PBOC official Ji Min)
- PBOC official (Ji Min still) warns of asset bubbles from reliance on stimulus
(file that second one under "warns again")
And a commentary piece in Economic Information Daily:
- GDP expected to remain in 6% to 7% range for 2017
- GDP growth to slow in H2 as less stimulatory policy in H2 after the strong H1
Negatives for H2:
- Continued deleveraging
- Inventory replenishment cycle ending
Positives:
- Better domestic consumption
- Improving external demand
- Stronger PPI