PBOC Injects CNY160 Billion In OMOs Weds, No Net Add/Drain

     BEIJING (MNI) - The People's Bank of China injected CNY100 billion in

seven-day reverse repos and CNY60 billion in 14-day reverse repos via

open-market operations Wednesday, Wind Information, a Shanghai-based financial

data provider, said.

     This resulted in no net add or drain of the liquidity for the day, as a

total of CNY160 billion in reverse repos mature on Wednesday. 

     Today is the seventh consecutive trading day that the PBOC has injected

liquidity into the banking system.  The PBOC injected a net CNY560 billion into

the interbank market via OMOs last week and CNY billion so far this week. 

     A total of CNY480 billion in reverse repos mature this week.

     The PBOC has said that its injections are intended to hedge the impact from

tax payments, government bond purchases and maturing reverse repos this month,

and so maintain stable liquidity conditions in banking system.

     The CFETS-ICAP money-market sentiment index ended at 43 on Tuesday, down

slightly from 45 at Monday's close. The lower the reading the better the

liquidity conditions in the interbank market.

     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 2.7491%, compared with

2.7845% on Tuesday.

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

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: beijing@mni-news.com

--MNI BEIJING Bureau; +1 202-371-2121; email: john.carter@mni-news.com

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