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MNI: PBOC Net Drains CNY40 Bln Via OMOs

     BEIJING (MNI) - The PBOC skipped open market operations on Friday,
resulting in net drain of CNY40 billion in liquidity as the same amount of
reverse repos matured today, according to Wind Information. The central bank
said liquidity in the banking system is at a relatively high level due to
quarter-end fiscal expenses, which can absorb the impact of reverse repo
maturities and government bond issuance.
  - This is the third straight trading day the PBOC has skipped OMO; 
  - Friday is the sixth consecutive trading day the central bank has net drained
liquidity;
  - CFETS-ICAP's money-market sentiment index closed at 41 on Thursday, up from
39 on Wednesday;
  - Benchmark 7-day deposit repo average rose to 2.6977% on Friday from 2.6957%
on Thursday: Wind Information. 
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MGQ$$$,MN$MM$]

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