The People's Bank of China (PBOC), China's central bank, conducted 75 billion yuan 28-day reverse repos at annualized yield of 2.25 percent in Tuesday's open market operations, the first time to resume this variety in nearly one year.
In the meantime, the central bank offered 80 billion yuan of 7-day reverse repos, with annualized yield keeping flat at 2.25 percent. As the Ministry of Finance invited bidding for 80 billion yuan of Treasury cash deposits on the same day, the central bank has injected 235 billion yuan worth of liquidity in a single day.
Xu Hanfei, chief analyst with Guotai Junan Securities, noted that the move would help ease the liquidity stretch at the year end.
Latest comments