PBOC sets USD/ CNY reference rate for today at 7.1882 (vs. estimate at 7.2769)

The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

• USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
• CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
• A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.

The previous close was 7.273

PBOC injects 753bn yuan via 7-day RR, sets rate at 1.5%

• 47bn yuan mature today, as do 1.45tln in 1 year MLF

Meanwhile, China’s long-term yields hit record lows on expectations of further People’s Bank of China easing ahead.

• 30-year treasury yield hit a record low of
  1.99%
• 10-year government bond yield fell
  to 1.75%
• A People’s Bank of China official said on Saturday that
  China has room to further cut the reserve requirement ratio

This article was written by Eamonn Sheridan at www.forexlive.com.