Policy

PBOC Skipped OMO Again Friday; Drained Net CNY160 Bln

Date 9/29/2017 5:53:27 PM

 BEIJING (MNI) - The People's Bank of China skipped its open-market operations again on Friday, the central bank announced.

     This resulted in a net drain of CNY160 billion for the day, as a total of CNY160 billion in reverse repos mature on Friday.

     The PBOC said 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 week.

     The PBOC drained a net CNY15 billion in September through open marke toperations and its Medium-term Lending Facility (MLF).  The PBOC added a netCNY15 billion via the MLF this month.

     The CFETS-ICAP money-market sentiment index ended at 49 on Thursday, down from 54 at Wednesday's close. The lower the reading the better the liquidity conditions in the interbank market.

     The benchmark seven-day repo average was last at 2.7298%, compared with2.9673% on Thursday.

Edited by SHMET