MNI CHINA MARKETS: Yuan Weaker; Rates Fall; Stocks Down

     BEIJING (MNI) - The yuan fell against the U.S. dollar Tuesday morning after

the People's Bank of China set a weaker daily fixing. 

     The yuan was last at 6.6086 against the U.S. unit, compared with the

official closing price of 6.5979 on Monday. 

     The PBOC set the yuan central parity rate against the U.S. dollar at 6.5944

on Tuesday, weaker than Monday's 6.5874. 

     Money market rates fell Tuesday morning after the PBOC injected CNY250

billion in liquidity via open-market operations, balancing out the same amount

of maturing reverse repos.

     The seven-day repo average was last at 2.8351% Tuesday, lower than Monday's

average of 2.8748%. The overnight repo average was at 2.7735%, lower than

Monday's 2.8087%. 

     The yield on benchmark 10-year China government bonds was last at 3.9600%,

down from the previous close of 3.9700%, according to Wind, a financial data

provider. 

     Stocks were down, led lower by the insurance and banking sectors. The

benchmark Shanghai Composite Index was last down 0.30% at 3,312.42. Hong Kong's

Hang Seng Index was 0.58% lower at 29,512.81.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: vince.morkri@marketnews.com

[TOPICS: M$A$$$,M$Q$$$,M$$FI$]