MNI: PBOC Skips Open Market Operation; Drains CNY30 Billion

     BEIJING (MNI) - The PBOC skipped OMO on Friday for the sixth consecutive

trading day, stating that the increasing fiscal expenditure towards month-end

would absorb the impact of maturing reverse repos and keep liquidity conditions

at a "reasonable and stable" level. 

  - This resulted in a net drain of CNY30 billion for the day after maturity of

the same amount of reverse repos;

  - The central bank drained a total of CNY160 billion this week by skipping its

OMO. After nearly two months of a loose stance on liquidity, the PBOC tightened

its policy after the seasonal liquidity demand reduced. 

  - CFETS-ICAP's money-market sentiment index closed at 43 on Thursday, slightly

down from 42 on Wednesday; 

  - Benchmark 7-day deposit repo average rose to 2.6683% on Friday from 2.5570%

on Thursday: Wind Information. 

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

--MNI Singapore Bureau; +65 8233 2326; email: Asia-Editor@marketnews.com

[TOPICS: M$A$$$,M$Q$$$,MGQ$$$,MN$MM$]