PBOC May Suspend 3-Month Bill Sale as Money-Market Rates Jump
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The People’s Bank of China may suspend a scheduled sale of three-month bills tomorrow as banks hoard cash before the New Year holidays, pushing money-market rates to the highest since October.
The central bank didn’t gauge demand for the securities this morning, according to two traders who declined to be identified because the information isn’t public. The seven-day repurchase rate, a measure of interbank funding availability, touched 5 percent today as lenders sought to boost capital to meet year-end requirements.