China Money Rates Slide as PBOC Adds Cash, Seasonal Factors Wane
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China’s money-market rates fell and interest-rate swaps retreated from the highest level since June as the central bank added cash to the financial system for the second time this week.
The People’s Bank of China conducted 16 billion yuan ($2.6 billion) of 14-day reverse-repurchase contracts today at a yield of 4.3 percent, according to a statement on the website. That followed an injection of 13 billion yuan via seven-day reverse repos at 4.1 percent on Oct. 29. Commercial banks hoard cash toward month-end to meet liquidity requirements set by the central bank and corporate tax payments fell due in October, locking up funds.