PBOC Conducts Trillion-Yuan Outright Reverse Repos in August, Debuts Overnight Reverse Repo Mid-Month

On August 14, the People's Bank of China conducted 1 trillion yuan in 6-month outright reverse repos with equal rollover, and for the first time launched 349 billion yuan in overnight reverse repos during the mid-month tax period, with a net injection of 348 billion yuan in a single day. The move aims to precisely address tax-period funding demand, reflecting a fine-grained control intent of "smoothing peaks and filling troughs." Boosted by ample liquidity, the 10-year government bond yield fell to 1.68%, a new low since July 2025.