Aug interbank lending daily turnover down 24.6% YoY, rates edge lower
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The People's Bank of China (PBOC) released financial market data for August 2026, showing a significant contraction in interbank lending activity. The average daily turnover of interbank lending reached 316.06 billion yuan, a year-on-year decrease of 24.6%. Meanwhile, the average daily turnover of bond repurchase agreements in the interbank market was 6.5 trillion yuan, down 14.8% from the same period last year. As of the end of August, outstanding interbank lending stood at 0.9 trillion yuan, while outstanding bond repurchases totaled 9.6 trillion yuan. In terms of interest rates, the monthly weighted average rate for the deposit institution overnight pledged repo (DR001) was 1.38%, down 1 basis point month-on-month. The DR007 rate averaged 1.40%, down 3 basis points from July. The broader overnight pledged repo rate (R001) averaged 1.40%, down 2 basis points. The average daily spread between DR001 and the PBOC's 7-day reverse repo rate was -2 basis points, while the spread between R001 and DR001 averaged 2 basis points.
Source report
Interbank Lending and Bond Repo Activity
In August 2026, the average daily turnover of interbank lending reached 316.06 billion yuan, representing a year-on-year decrease of 24.6%. Meanwhile, the average daily turnover of bond repurchase agreements in the interbank market stood at 6.5 trillion yuan, down 14.8% compared to the same period last year.
As of the end of August 2026:
- Outstanding interbank lending balance: 0.9 trillion yuan
- Outstanding bond repurchase balance in the interbank market: 9.6 trillion yuan
Interest Rate Movements
Key Benchmark Rates
In August 2026, the monthly weighted average interest rates for key overnight and 7-day repurchase agreements were as follows:
| Indicator | Rate | Month-on-Month Change | |-----------|------|-----------------------| | DR001 (Overnight interest rate repo for interest rate bonds among depository institutions) | 1.38% | -1 basis point | | DR007 (7-day interest rate repo for interest rate bonds among depository institutions) | 1.40% | -3 basis points | | R001 (Overnight interbank market repo) | 1.40% | -2 basis points |
Interest Rate Spreads
- DR001 vs. 7-day PBOC open market reverse repo rate: The average daily spread was -2 basis points.
- R001 vs. DR001: The average daily spread was 2 basis points.
Source
第一财经Eastern
Part of this Story
PBOC reports sharp drop in China interbank lending and bond repo volumes for August 2026