PBOC Injects Net CNY20 Billion In OMOs Thursday

     BEIJING (MNI) - The People's Bank of China injected CNY80 billion in

seven-day reverse repos and CNY40 billion in 14-day reverse repos via

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

data provider, said.

     This resulted in a net injection of CNY20 billion for the day, as a total

of CNY100 billion in reverse repos mature on Thursday. 

     Today is the seventh in eight trading days that the PBOC has injected

liquidity into the banking system. The PBOC left the level of liquidity

unchanged on Wednesday. 

     The PBOC injected a net CNY560 billion into the interbank market via OMOs

last week and CNY300 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 thus maintain a stable liquidity condition in the banking system.

     The CFETS-ICAP money-market sentiment index ended at 45 on Wednesday, 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 9:45 a.m., Beijing time.

     The benchmark seven-day repo average was last at 2.6659%, compared with

2.9286% on Wednesday.

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

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

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