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PBOC Skipped OMO Saturday; Drained Net CNY360 Bln for the Week

     BEIJING (MNI) - The People's Bank of China skipped its open-market
operations again on Saturday, the central bank announced. 
     The operation did not add or drain liquidity from the market, since  no
reverse repos matured today. 
     The PBOC repeated that 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
     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 47 on Friday, down
from 49 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 2.7206%, compared with
2.9882% on Friday.
--MNI Beijing Bureau; +86 (10) 8532 5998; email:
--MNI BEIJING Bureau; +1 202-371-2121; email:

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