China's Citic Securities is forecasting a 10 bp rate cut in the five-year LPR next week

Market expectations are for a 10bp rate cut to the People's Bank of China's Medium-term lending facility today.

The current MLF rate is 2.75% and this is expected to be trimmed by 10 bp. This would be the first cut in 10 months.

• There is 200 bn yuan of a maturing MLF expected to be rolled over, if not added to.
• Another rate cut expected from the People's Bank of China on Thursday. To the 1 year MLF.

• Nomura cites a "strong signal" for a cut to MLF rate this week and the LPR next week

• China state-controlled financial media says PBOC may cut MLF rate by 5 to 10 bp this week

The PBOC have already cut rates on two policy instruments this week:

• People's Bank of China rate cut overnight (that's two rate cuts in one day)

A cut in the MLF is generally held to predict a similar cut in the PBOC’s Loan Prime Rate (LPR). LPRs are due to be set on the 20th, which is Tuesday next week. China's Citic Securities is forecasting an at least 10 bps cut in the five-year LPR, which currently stands at 4.30%.