PBOC to Conduct 700 Billion Yuan Outright Reverse Repo Operation on October 15, With a Six-Month Term

October will see an increased rollover of outright reverse repo operations.

On October 14, the People's Bank of China issued a tender announcement for open market outright reverse repo operations. In order to keep liquidity in the banking system ample, the central bank will conduct a 700 billion yuan outright reverse repo operation on October 15, 2026 through a fixed-quantity, rate-based tender with multiple-price allotment, with a term of six months (182 days) maturing on April 15, 2027 (extended if it falls on a holiday).

As 500 billion yuan of six-month outright reverse repos mature in October, the operation will bring a net injection of 200 billion yuan. Together with the additional 200 billion yuan in three-month outright reverse repos rolled over earlier in October, outright reverse repo operations across the two tenors will add a total of 400 billion yuan in October.

To maintain reasonably ample liquidity in the banking system and further enrich its monetary policy toolkit, the PBOC introduced the open market outright reverse repo tool in October 2024. The tool is used with primary dealers in open market operations, in principle once a month, with a term of no more than one year.