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China Conducts Record Reverse Repos Before Lunar New Year Break

China added a record 450 billion yuan ($72 billion) to the financial system using reverse-repurchase contracts today, helping banks meet increased demand for cash before the weeklong Lunar New Year break.

The People’s Bank of China offered 14-day agreements at a yield of 3.45 percent, helping push the benchmark money-market rate down for the first time in seven days. The contracts inject funds using short-term asset purchases and today’s amount was the most for a single day and exceeded each of the weekly totals for the past three months, official data show.