PBOC Suspends Bill Sales as Rate Swap Climbs Most in 10 Months

China’s central bank refrained from draining funds from the financial system for the first time in three months as a cash squeeze pushed interest-rate swaps up by the most since August.

The People’s Bank of China hasn’t offered repurchase contracts or bills today, according to two traders required to bid at the auctions. Two calls by Bloomberg News to the PBOC’s media office went unanswered. The monetary authority conducted repo operations every week since February and resumed sales of bills in May for the first time since December 2011.