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PBOC Skipped OMO Wednesday; Drained CNY40 Bln

--PBOC Says Fiscal Spending Offsetting Impact of Expiring Repos
     BEIJING (MNI) - The People's Bank of China skipped its open market
operations on Wednesday, the central bank announced on its website. 
     This resulted in a net drain of CNY40 billion for the day, as a total of
CNY40 billion in reverse repos mature on Wednesday. 
     The PBOC said liquidity conditions in the banking system are at a
"relatively high" level as increased fiscal spending towards month-end were
offsetting the impact of maturing reverse repos.
     The CFETS-ICAP money-market sentiment index ended at 53 on Tuesday, down
from 57 at Friday's close. The lower the reading the better the liquidity
conditions in the interbank market.
     The benchmark seven-day repo average was last at 2.7631%, compared with
3.1477% on Tuesday.
--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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