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MNI: PBOC Skips Open Market Operations; Net Drains CNY120 Bln

     BEIJING (MNI) - The People's Bank of China (PBOC) skipped open market
operations for the fifth day on Tuesday, which led to a net liquidity drain of
CNY120 billion due to the maturity of reverse repos, according to Wind
Information. 
     - The total liquidity in the banking system is reasonable and ample, as
increased fiscal spending by month-end offset the maturity of reverse repos, the
PBOC said.
     - The 7-day weighted average interbank repo rate for depository
institutions (DR007) rose to 2.5948% at 9:42 a.m. local time from the weighted
average of 2.5252% on Monday: Wind Information.
     - The CFETS-NEX money-market sentiment index closed at 46 on Monday vs 48
on Friday. A greater index indicates heightened market expectations for tighter
liquidity.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MGQ$$$,MN$MM$]

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