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PBOC Skipped Its OMOs Monday; Drained CNY140 billion

     BEIJING (MNI) - The People's Bank of China skipped its open market
operations on Monday, according to the PBOC.
     The PBOC said the liquidity level in the banking system was "relatively
high" so that the influence of maturing reverse repos can be "absorbed."
     This resulted in a net drain of CNY140 billion for the day, as a total of
CNY140 billion in reverse repos mature on Monday. 
     There will be a total of CNY370 billion of reverse repos maturing this
week.
     A total of CNY169.5 of medium-term lending facilities (MLF) will mature on
Thursday.
     The CFETS-ICAP money-market sentiment index ended at 37 on Friday - down
from 42 at Thursday's close. The lower the reading the better the liquidity
conditions in the interbank market.
     The benchmark seven-day repo average was last at 2.6516%, compared with
2.9408% 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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