MNI BRIEF: PBOC Added Outright Repo For Ample Lqdty In Nov
MNI (BEIJING) - The People’s Bank of China increased outright reverse repo operations in November and continued to purchase treasury bonds to maintain adequate and reasonable liquidity in the banking system, according to statements on its website on Friday.
The central bank conducted CNY800 billion in outright reverse repo through fixed-quantity, rate-based bidding with multiple price points this month, with a term of three months, compared with CNY500 billion in October with a six-month term using the same bidding and pricing approach.(see:MNI: PBOC To Expand Tools, Cut RRR As Fresh Bonds Hit Market)
Meanwhile, the Bank also engaged in treasury bond trading, with a net purchase of CNY200 billion, the fourth consecutive month of net buying so far since the PBOC introduced the bond trade tool in August.