PBOC Injects Net CNY80 Billion Via OMOs Tuesday

     BEIJING (MNI) - The People's Bank of China injected CNY140 billion in

seven-day reverse repos, CNY60 billion in 14-day reverse repos and CNY100

billion in 63-day reverse repos via its open-market operations Tuesday, Wind

Information, a Shanghai-based financial data provider, said.

     This resulted in a net injection of CNY80 billion for the day, as a total

of CNY220 billion in reverse repos mature on Tuesday. The PBOC has injected net

liquidity in 11 of the last 13 trading days and left liquidity unchanged the

other two.

     The PBOC has injected a net CNY120 billion in liquidity so far this week.

     The PBOC has explained that it is trying to offset the impact of October

tax payments and maturing reverse repos to maintain relatively stable liquidity.

     A total of CNY470 billion in reverse repos will mature the rest of this

week, and a total of CNY207 billion in Medium-term Lending Facility (MLF) loans

will mature on Friday.

     Today is the third consecutive day the PBOC has injected liquidity via its

new 63-day reverse repos, introduced last Friday.

     The CFETS-ICAP money-market sentiment index ended at 63 on Monday, up from

56 at Friday'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 2.6623%, compared with

2.9570% 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$MM$]