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MNI: PBOC Drains Net CNY400 Bln Via OMO Mon; Rates Unchanged

MNI (Singapore)
MNI (Beijing)
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The People's Bank of China (PBOC) conducted CNY100 billion via 14-day reverse repo on Monday, with the rates unchanged at 1.95%. The reverse repo operation has led to a net drain of CNY400 billion reverse repos after offsetting CNY500 billion maturity today, according to Wind Information. The reserve requirement ratio cut announced on Jan 24 is effective today which releases an estimate of CNY1 trillion long-term funds to the market.

  • The seven-day weighted average interbank repo rate for depository institutions (DR007) fell to 1.9310% at 10:58 am local time from the close of 1.9431% on Friday.
  • The CFETS-NEX money-market sentiment index, measuring interbank money-market liquidity, closed at 44 on Friday, compared with the close of 49 on Thursday. A higher reading points to tighter liquidity condition, with 50 representing an equilibrium.
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The People's Bank of China (PBOC) conducted CNY100 billion via 14-day reverse repo on Monday, with the rates unchanged at 1.95%. The reverse repo operation has led to a net drain of CNY400 billion reverse repos after offsetting CNY500 billion maturity today, according to Wind Information. The reserve requirement ratio cut announced on Jan 24 is effective today which releases an estimate of CNY1 trillion long-term funds to the market.

  • The seven-day weighted average interbank repo rate for depository institutions (DR007) fell to 1.9310% at 10:58 am local time from the close of 1.9431% on Friday.
  • The CFETS-NEX money-market sentiment index, measuring interbank money-market liquidity, closed at 44 on Friday, compared with the close of 49 on Thursday. A higher reading points to tighter liquidity condition, with 50 representing an equilibrium.