PBOC sets USD/ CNY reference rate for today at 7.1029

<p>The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.</p><ul><li>USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.</li><li>CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.</li><li>A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.</li></ul><p>The previous close was 7.1620</p><p>ps. The 10-year government bond yield has dropped to 2.525%, the lowest since April of 2020</p><p>Earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-is-expected-to-set-the-usdcny-reference-rate-at-71593-reuters-estimate-20240105/" target="_blank" rel="follow" data-article-link="true">PBOC is expected to set the USD/CNY reference rate at 7.1593 – Reuters estimate</a></li></ul><p>more to come</p><p>PBOC injects 75bn via 7-day RR, sets rate at an unchanged 1.8%</p><ul><li>486bn yuan of RRs mature today</li><li>thus a net 411bn yuan drain on the day in OMOs</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.