I posted earlier (as the news hit) of the PBOC's biggest injection of funds into the money market since September of 2015
PBOC injects 130 bn yuan - sets USD/CNY at 6.5169
Bloomberg have more now:
The overnight repurchase rate, a gauge of interbank funding availability, fell four basis points to 1.98 percent as of 9:48 a.m. in Shanghai, according to a weighted average price from the National Interbank Funding Center. It climbed to 2.12 percent on Dec. 31, the highest since April. Tuesday's reverse repos were conducted at 2.25 percent.
"Liquidity is tight in the market and the PBOC has to react to that," said Frances Cheung, Hong Kong-based head of rates strategy for Asia ex-Japan at Societe Generale SA. "Capital outflows may keep liquidity tight and there is likely to be more easing from the PBOC."
(Bolding mine)
