DR007 Returns Below Policy Rate as Money Market Stabilizes

According to Shanghai Securities News, DR007 has recently returned below the 7-day reverse repo policy rate, signaling easing in the previously tight liquidity conditions. Market participants expect the period of elevated money market tightness to have passed, supported by the central bank's excess renewal of 3-month buy-back reverse repos, recovering bank lending flows, and lower-than-expected government bond supply pressures.
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