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Interbank liquidity has been............>

CHINA PRESS
CHINA PRESS: Interbank liquidity has been excessively loose, as indicated by the
inversion of the yield on benchmark 1-year China Government Bond and the rate of
open market operations (OMO), Economic Information Daily reported. 
  - Although local bonds issuance and tax payments can partly drain liquidity,
after the PBOC has skipped OMOs for 15 days, the excess reserve ratio is likely
above 2%, the newspaper said, citing Haitong Securities. 
  - Large amounts of funds cannot flow into the real economy, as they are stuck
in the interbank market, the newspaper said, citing market participants. 
  - The PBOC may use repos and other monetary policy tools to drain some
liquidity to stabilise the market, said Citic Securities, according to the
newspaper.

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