PBOC Injects Net CNY140 Billion In OMOs Tuesday

     BEIJING (MNI) - The People's Bank of China injected CNY130 billion in

seven-day reverse repos and CNY120 billion in 14-day reverse repos via

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

data provider, said.

     This resulted in a net injection of CNY140 billion for the day, as a total

of CNY110 billion in reverse repos mature on Tuesday. 

     Today is the sixth 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 CNY280 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 45 on Monday, up

slightly from 43 at Tuesday'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 2.7035%, compared with

2.7896% on Wednesday.

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

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

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