Asia FX and Rates Strategy_ China Watch_ PBoC’s new outright reverse repo tool

27 Oct 2024 22:34:25 ET │ 8 pages Asia FX and Rates Strategy China Watch: PBoC's new outright reverse repo tool CITI'S TAKE PBoC announced today the addition of "outright reverse repo" to its toolbox. In our view, the new tool should increase PBoC's ability to affect both short end (3m/6m etc.) and long end of the yield curve (if PBoC sells the bonds), to adjust liquidity across tenors (e.g. by smoothening impacts of maturing MLFs), to nurture the outright repo market as more international investors enter t ...