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MNI: PBOC Skips Open Market Operations, Net Drains CNY50 Bln

     BEIJING (MNI) - The People's Bank of China (PBOC) skipped open market
operations on Monday, draining net CNY50 billion given the maturity of reverse
repos, according to Wind Information.
     - The PBOC today conducted the 0.5 percentage point cut to the reserve
requirement ratio announced on January 1, which is expected to release CNY800
billion of long-term funds, the PBOC said on its website. Total liquidity in the
banking system is relatively high, enough to offset the maturity of reverse
repos, the PBOC added.
     - The 7-day weighted average interbank repo rate for depository
institutions (DR007) rose to 2.6000% at 09:36 a.m. local time from the close of
2.0189% on Friday: Wind Information.
     - The CFETS-NEX money-market sentiment index closed at 38 on Friday vs 35
on Thursday. A higher index indicates increased 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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