China Money-Market Rate Jumps as Central Bank Drains Excess Cash
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China’s money-market rate jumped the most in six weeks, rebounding from a nine-month low, as the central bank withdrew excess cash from the financial system.
The People’s Bank of China sold 50 billion yuan ($8.1 billion) of 28-day repurchase agreements at 4 percent and 35 billion yuan of 14-day contracts at 3.8 percent, it said in a statement today. That’s the first use of the 28-day instrument since June and comes after 268 billion yuan of 14-day repos were sold in the last two weeks. Banks are awash with cash after the central bank sold the yuan to weaken the currency against the dollar last month.