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PBOC Injects Net CNY40 Billion In OMOs Monday

     BEIJING (MNI) - The People's Bank of China injected CNY70 billion in
seven-day reverse repos, CNY30 billion in 14-day reverse repos and CNY50 billion
in 63-day reverse repos via open-market operations Monday, Wind Information, a
Shanghai-based financial data provider, said.
     This resulted in a net injection of CNY40 billion for the day, as a total
of CNY110 billion in reverse repos mature on Monday. The PBOC has injected net
liquidity in 10 of the last 12 trading days and left liquidity unchanged the
other two. 
     The PBOC has explained that it is seeking to offset the effects of large
tax payments and expiring reverse repos this month to maintain a stable
liquidity level. 
     A total of CNY800 billion in reverse repos will mature this week. And a
total of CNY207 billion in medium-term lending facilities (MLF) loans will
mature this Friday.
     The CFETS-ICAP money-market sentiment index ended at 56 on Friday, barely
changed from 55 at Thursday'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 2.6985%, compared with
2.8617% on Friday.
--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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