The Benchmark Shift: How PBOC's Overnight Rate Pivot Quietly Rewires China's Bond Market
CryptoPrime
The signal is not in the announcement. It is in the pricing. Chinese lenders are now pricing bonds off the overnight funding rate. This is not a footnote in a monetary policy report. It is a structural migration of the entire benchmark framework. The People's Bank of China has initiated a quiet coup against its own legacy tools. The MLF is losing its throne. The overnight rate is taking over. Logic remains; sentiment fades. The market is still parsing this as a precursor to a rate cut. That is a misread. This is a systemic change in how the central bank steers liquidity.