Overnight reverse repo operations imminent, Central Bank multi-pronged efforts to protect mid-year liquidity.

The People's Bank of China announced on June 25 that it will increase the variety of overnight reverse repurchase operations in the open market operations on June 29 and June 30. On the same day, the central bank conducted 500 billion yuan of MLF operations and 370.5 billion yuan of 7-day reverse repurchase operations, achieving a net injection of 322.5 billion yuan. Experts say that increasing the variety of overnight reverse repurchase operations and net injection of 7-day reverse repurchase operations will help better match the short-term liquidity needs of the banking system. At the same time, increasing the MLF for the month will effectively meet the longer-term funding needs of financial institutions, support the smooth issuance of government bonds, and encourage banks to increase their lending efforts.