The People's Bank of China (PBOC), China's central bank, auctioned 6 billion yuan (US$885 million) of one-year bills at a yield of 2.0929 percent at its regular open market operations Tuesday.

The yield on the one-year bill has been steady at 2.0929 percent for almost a month, since June 8, when the PBOC sold 15 billion yuan (US$2.21 billion) of bills.

During recent weeks, the central bank has reduced drainage operations in the money market through bill issuance and repurchase agreements, easing short-term liquidity squeezes.

The PBOC pumped 67 billion yuan (US$9.88 billion) into the money market last week by offsetting money supply with one-week bills and repurchase agreements.

Some 136 billion yuan (US$20 billion) of PBOC bills and repurchase agreements are due to mature this week.

(Xinhua News Agency July 6, 2010)