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PBOC Skipped OMO Again Friday; Drained Net CNY160 Bln

     BEIJING (MNI) - The People's Bank of China skipped its open-market
operations again on Friday, the central bank announced. 
     This resulted in a net drain of CNY160 billion for the day, as a total of
CNY160 billion in reverse repos mature on Friday. 
     The PBOC said interbank market liquidity remains at a "relatively high
level" and that strong end-of-month government fiscal spending was offsetting
the impact of expiring reverse repos. 
     The PBOC drained a net CNY360 billion via its open market operations this
week.
     The PBOC drained a net CNY15 billion in September through open market
operations and its Medium-term Lending Facility (MLF).  The PBOC added a net
CNY15 billion via the MLF this month. 
     The CFETS-ICAP money-market sentiment index ended at 49 on Thursday, down
from 54 at Wednesday's close. The lower the reading the better the liquidity
conditions in the interbank market.
     The benchmark seven-day repo average was last at 2.7298%, compared with
2.9673% on Thursday.
--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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