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PBOC Drains Net CNY80 Billion In OMOs Tuesday

     BEIJING (MNI) - The People's Bank of China injected CNY40 billion in 14-day
reverse repos and CNY10 billion in 28-day reverse repos via open-market
operations Tuesday, Wind Information, a Shanghai-based financial data provider,
said.
     This resulted in a net drain of CNY80 billion for the day, as a total of
CNY130 billion in reverse repos mature on Tuesday. 
     The CFETS-ICAP money-market sentiment index rose to 57 on Monday, up from
42 at Friday's close. The lower the reading the better the liquidity conditions
in the interbank market.
     The PBOC also drained CNY80 billion via its OMO on Monday, and explained
that liquidity from high end-of-month government fiscal spending would offset
the drain from expiring reverse repos. 
     The PBOC is expected to make an official announcement on its official
website about this morning's OMO around 9:45a.m., Beijing time.
     The benchmark seven-day repo average was last at 2.7999%, compared with
3.0680% on Monday.
--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com
--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com
[TOPICS: MMQPB$,M$A$$$,M$Q$$$,MN$MM$]

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