PBOC to Run Daily Overnight Reverse Repos of Up to RMB600 Billion on September 14-17

The People's Bank of China announced that, to better match short-term liquidity demand in the banking system, it will conduct overnight reverse repurchase operations from September 14 to September 17, 2026, using fixed-rate quantity tenders, with a daily operation volume of no more than RMB600 billion. The advance notice is broadly consistent with the situation in August 2026, with both starting injections one day before the tax filing deadline. The central bank announced the daily cap on overnight reverse repos for the mid-month period in advance, but did not disclose the specific operation amounts.

According to disclosed issuance plans, government bond payments of RMB578 billion are scheduled for September 14 to 18, 2026, along with two discount government bonds whose sizes have not been disclosed. On September 14, 2026, RMB500 billion of outright reverse repos will mature. September 2026 is a traditional small tax period. During the three-day tax period in August 2026, the central bank injected an average of more than RMB450 billion per day through overnight reverse repos, and money market rates showed essentially no significant fluctuations. In early September 2026, the interbank overnight rate moved in a range of 1.35% to 1.4%, while seven-day reverse repos were mainly rolled over at zero or with small injections.