MNI: PBOC Cuts 1-Yr MLF Rates by 10 Bps, Net Drains CNY700 Bln

     BEIJING (MNI) - The People's Bank of China (PBOC) lowered the 1-year

medium-term lending facility (MLF) rate to 3.15% from 3.25% today, while

injecting CNY200 billion via 1-year MLF, according to a statement on its

website. This follows a 5 bps cut back on Nov. 5 last year.

     - The PBOC also injected CNY100 billion via 7-day reverse repos with the

rate unchanged on the same day, according to the statement. These operations

resulted in a net drain of CNY700 billion given the maturity of CNY1 trillion of

reverse repos, according to Wind Information.

     - The operations aim to offset the maturity of reverse repos and maintain

reasonable and ample liquidity in the banking system, the PBOC said.

     - The 7-day weighted average interbank repo rate for depository

institutions (DR007) rose to 2.3514% at 10:08 am local time from the close of

1.9826% on Friday: Wind Information. 

     - The CFETS-NEX money-market sentiment index closed at 30 on Friday vs 33

on Thursday. A lower index indicates reduced market expectations for tighter

liquidity.

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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