Bond prices on China's interbank bond market are likely to correct Wednesday after the central bank's reverse repos sales.
The People's Bank of China, China's central bank conducted 50 billion yuan worth of 7-day reverse repos in Tuesday's open market operations.
As there were 50 billion yuan worth of reverse repos due on Tuesday, the central bank neither drained nor injected funds into the banking system via Tuesday's open market operation.
Traders noted that capital prices in the money market started to edge up on Tuesday after the central bank supplied no liquidity on open market, which might further press down bond prices.
On Tuesday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, lost 0.0145 percent to 164.986 points.
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