China’s PBOC Injects 28-Day Funds for First Time Since February
- Cuts rate on one-month cash, keeps unchanged for other tenors
- Central bank is trying to cover holiday period, Citic says
PBOC Injects Cash Via 28-Day Reverse Repo
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China’s central bank resumed the use of a 28-day lending tool for the first time since February, lowering the interest rate as it injected funds into the financial system before a series of onshore holidays.
The People’s Bank of China auctioned 60 billion yuan ($9 billion) of reverse-repurchase agreements in open-market operations Tuesday, reducing the rate to 2.55 percent from 2.6 percent on Feb. 5. The authority also sold 30 billion yuan of 14-day reverse repos and 70 billion yuan of one-week contracts, keeping their interest rates unchanged at 2.4 percent and 2.25 percent, respectively. The nation’s financial markets are closed for holidays Thursday and Friday, and for the week through Oct. 7.