Trial now
AUSSIE BONDS

RBA Guidance And Market Pricing Further Diverge

US TSYS

TYZ1 Holds Most Of Friday's Gains

RATINGS

Positive Tweaks On A Couple Of Outlooks On Friday

AUSSIE 3-YEAR TECHS

(Z1) Sell-Off Abates

     BEIJING (MNI) - The People's Bank of China skipped its open-market
operations on Thursday, saying that an increase in fiscal spending toward the
year-end can hedge the impact of maturing reverse repos and that liquidity
conditions are still at a high level.
     This resulted in a net drain of CNY30 billion for the day, as a total of
CNY30 billion in reverse repos mature on Wednesday. It is the fifth consecutive
trading day that the PBOC has skipped the OMOs.
     The PBOC has drained a net CNY240 billion from the interbank market so far
this week. Analysts said the the central bank's decision has worsened the
structural problem of liquidity, particularly when the demand is increasing at
year-end. 
     The CFETS-ICAP money-market sentiment index ended at 54 on Wednesday,
slightly down from 56 at Tuesday's close. The lower the reading the better the
liquidity conditions in the interbank market. 
     The benchmark seven-day repo average was last at 2.6680%, compared with
2.8773% on Wednesday. 
--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com
--MNI Beijing Bureau; +86 (10) 8532-5998; email: rich.dirks@marketnews.com
[TOPICS: MMQPB$,M$A$$$,M$Q$$$,MN$MM$]