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MNI: PBOC Net Drains CNY260 Billion Via OMOs Thursday

MNI (Sydney)

The People's Bank of China (PBOC) injected CNY200 billion via one-year medium-term lending facilities (MLFs) with the rate unchanged at 2.95% on Thursday. This aims to roll over the same amount of MLFs maturing today. The PBOC also injects CNY20 billion via 7-day reverse repos. This resulted in a net drain of CNY260 billion given the maturity of CNY280 billion of reverse repos today, according to Wind Information.

  • The operation aims to maintain reasonable and ample liquidity, as cash returns to the banking system after the Chinese New Year holiday, the PBOC said on its website.
  • The 7-day weighted average interbank repo rate for depository institutions (DR007) rose to 2.1981% at 09:33 am local time from the close of 2.2083% at Feb. 10, the last working day of the week-long holiday.
  • The CFETS-NEX money-market sentiment index closed at 37 on Feb. 10 vs 41 on the previous day. A lower index indicates decreased market expectations for tighter liquidity.
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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