China Liquidity Fears Ease As PBOC Injects 255 Billion CNY – Most Since Feb 2013!

• China Liquidity Fears Ease As PBOC Injects 255 Billion CNY – Most Since Feb 2013! 
  by Tyler Durden, www.zerohedge.com, 20 Jan 2014
  Despite all the reform policy imperatives to constrict credit and normalize and liberalize policy and rates, the PBOC just provided the largest liquidity injection to its banking system in a year – 255bn CNY. While this is not entirely unusual for a year-end, when Chinese banks have to confess their illiquidity sins and cover mismatches (and are always helped by the PBOC); this year, short-term money-market rates are triple that of last year and there is a very real chance of a very real default within the shadow banking system. Of course, the sell-side are desperately writing cover that this is all priced in and even if the PBOC “lets some Trusts go” then they will come to the rescue and any crisis will be “contained.” However, no one knows who will be saved and therein lies the safety-first rub – now where have we heard “contained” before?
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  * PBOC TO CONDUCT 75B YUAN OF 7-DAY REVERSE REPOS: TRADER
  * PBOC TO CONDUCT 180B YUAN OF 21-DAY REVERSE REPOS: TRADER
  * PBOC OFFERS 7-DAY REVERSE REPO AT 4.1% YIELD: TRADER
  * PBOC OFFERS 21-DAY REVERSE REPO AT 4.7% YIELD: TRADER
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