Policy

PBOC Skipped OMO on Monday; Drained Net CNY180 Bln

Date 10/9/2017 4:40:23 PM

BEIJING (MNI) - The People's Bank of China skipped its open-market

operations on Monday, the central bank announced.

     This resulted in a net drain of CNY180 billion for the day, as a total of

CNY180 billion in reverse repos mature on Monday.

     The PBOC said in a statement that interbank market liquidity remains at a

"relatively high level" that will offset the impact of expiring reverse repos.

     The PBOC drained a net CNY360 billion via its open market operations the

week before the week-long National Day holiday.

     A total of CNY320 billion in reverse repo and CNY84 billion in Medium-term

Lending Facility instruments will mature this week.

     The CFETS-ICAP money-market sentiment index ended at 77 on Saturday, Sept.

30 -- the last trading day before the holiday and the end of both the month and

the quarter -- up sharply from 47 at Friday, Sep. 29's close. The lower the

reading the better the liquidity conditions in the interbank market.

     The benchmark seven-day repo average was last at 2.6500%, compared with

3.1622% on Sept.30.

Edited by SHMET