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The PBOC kept liquidity unchanged for the second straight day, this week has seen a net drain of CNY 70bn. Slightly tighter liquidity conditions have seen money market rates rise for the second day.
- The benchmark 7-day repo rate rose 25ps to 2.1773%, compared to 1.61% earlier in the week. Rates had eased after the PBOC added liquidity unexpectedly via the MLF at the start of December.