SHANGHAI, Aug 12: China’s money rates were mixed on Monday morning with volatility keeping low in a market served by ample liquidity, traders said.
The volume-weighted average of the benchmarket seven-day repo rose to 3.6791, up from 3.6557 on Friday’s close.
The overnight rate also rose by over 5 basis points to 2.9784 on strong demand but weak supply, while the 14-day rate sank 11 basis points to 4.1524.
Traders said that conditions were relaxed on the day thanks to the continued usage of reverse repos by the central bank in open market operations, which they said helped maintain rate stability.
Instruments previously issued by the People’s Bank of China (PBOC) are set to inject a net 84 billion yuan into the money market this week, exclusive of any injections or drains made by the bank during upcoming open market operations on Tuesday and Thursday. The PBOC injected a net 20 billion yuan last week.
(AGENCIES)
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