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MNI: PBOC Net Drains CNY310 Billion via OMOs Wed

MNI (Sydney)

The People's Bank of China (PBOC) injected CNY10 billion via 7-day reverse repos with rates unchanged at 2.2% on Wednesday. This resulted in a net drain of CNY310 billion given the maturity of CNY20 billion of reverse repos and CNY 300 billion of the medium-term lending facility (MLF) today, according to Wind Information.

  • The operation aims to maintain the liquidity in the banking system at a reasonable and ample level, the PBOC said on its website.
  • MNI noted that the PBOC has conducted CNY950 billion of one-year MLF yesterday, aiming to roll over the CNY900 billion of MLFs maturing this month.
  • The 7-day weighted average interbank repo rate for depository institutions (DR007) rose to 2.2000% at 09:31 am local time from the close of 2.0108% on Tuesday.
  • The CFETS-NEX money-market sentiment index closed at 33 on Tuesday vs 35 on Monday. A lower index indicates decreased market expectations for tighter liquidity.
MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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MNI Sydney Bureau | +61-405-322-399 | lachlan.colquhoun.ext@marketnews.com
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