MNI: PBOC Injects Net CNY220 Billion In OMOs Wednesday

     BEIJING (MNI) - The People's Bank of China injected CNY160 billion in

seven-day reverse repos, CNY140 billion in 14-day reverse repos and CNY30

billion in 63-day reverse repos via open-market operations Wednesday,

WallstreetCN, a financial news provider, said.

     This resulted in a net injection of CNY220 billion for the day, as a total

of CNY110 billion in reverse repos mature on Wednesday. 

     The PBOC has injected a net CNY510 billion in liquidity into the interbank

market so far this week. The PBOC explained in a statement Tuesday that it was

trying to offset the impact of lower liquidity from government bond purchases

and expiring reverse repos to keep liquidity basically stable. 

     A total of CNY340 billion in reverse repos mature this week. In addition,

CNY66.5 billion in Medium-term Lending Facility (MLF) loans matured on Monday,

another CNY122.5 billion in MLF loans will mature Thursday, while CNY80 billion

in treasury deposits will mature Friday.

     The CFETS-ICAP money-market sentiment index ended at 51 on Tuesday, the

same as the 51 reading at Monday's close. The lower the reading the better the

liquidity conditions in the interbank market.

     The PBOC is expected to make an official announcement on its official

website about this morning's OMO around 9:45a.m., Beijing time.

     The benchmark seven-day repo average was last at 2.6507%, compared with

2.9431% on Monday.

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

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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