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MNI: PBOC Net Drains CNY150 Billion Via OMOs Thursday

MNI (Sydney)

The People's Bank of China (PBOC) injected CNY100 billion via 7-day reverse repos with the rate unchanged on Thursday. This resulted in a net drain of CNY150 billion given the maturity of CNY250 billion of reverse repos today, according to Wind Information.

  • The operation aims to keep the liquidity in the banking system reasonable and ample, as fiscal expenditures have increased significantly near the end of the month, the PBOC said on its website.
  • The 7-day weighted average interbank repo rate for depository institutions (DR007) dropped to 2.2000% at 09:26 am local time from 3.0936% at Wednesday's close.
  • The CFETS-NEX money-market sentiment index closed at 62 on Wednesday vs 65 on Tuesday. A lower index indicates decreased market expectations for tighter liquidity.
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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