Before we get into the main story for headline scanning algos which of course is the endless Greek tragedy, it is worth noting that while overnight China scrapped its 75% loan to deposit ratio cap for commercial banks, broadly seen as yet another easing move, the PBOC also engaged in its first liquidity injection via reverse repo since April in what many took to be an indication that an RRR-cut is increasingly less likely. As Reuters reports, "The decision to resume injecting funds via reverse bond repurchase agreements after a nine-week hiatus shows the bank is moving proactively to offset rising seasonal cash demand as companies prepare to file their first-half financial reports."

Money rates are typically under pressure toward the end of the quarter, and in particular at the end of the first half, when banks and corporates stock up on cash to burnish their balance sheets.

 In addition, large batches of IPOs have from time to time frozen a large amount of short-term liquidity.