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China's central bank injects cash into money market

Xinhua, April 25, 2017 Adjust font size:

China's central bank continued cash injections into the money market through open market operations on Tuesday to ease liquidity.

The People's Bank of China (PBOC) conducted 80 billion yuan (11.6 billion U.S. dollars) of reverse repos, resulting in a net 40 billion yuan added to the market, as 40 billion yuan of previous reverse repos became due on Tuesday.

The operations included 40 billion yuan of 7-day reverse repo prices to yield 2.45 percent, 20 billion yuan of 14-day contracts with a yield of 2.6 percent, and 20 billion yuan of 28-day agreements with a yield of 2.75 percent.

It was the PBOC's sixth straight cash injection via reverse repos as lending costs remained on the up.

On Tuesday's interbank market, the overnight Shanghai Interbank Offered Rate (Shibor) climbed to 2.7514 percent, the highest in more than two years. Endi