China Overnight Repo Rate Gains a Ninth Day as PBOC Drains Funds
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China’s overnight money-market rate rose for a ninth day, the longest stretch since March, as the central bank drained funds from the financial system.
The People’s Bank of China sold 10 billion yuan ($1.6 billion) of 91-day bills today at a yield of 2.9089 percent, said a trader at a primary dealer required to bid at the auctions. The PBOC also offered 9 billion yuan of 28-day repurchase agreements at 2.75 percent, according to a statement on its website. The central bank withdrew 35 billion yuan last week after recommencing sales of the short-term securities on May 9 for the first time since December 2011.