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China Money Rates Tumble for Second Day on Targeted PBOC Easing

China’s benchmark money-market rates tumbled for a second day, extending a retreat from record highs, on signs targeted injections of funds are being used to ease a cash crunch that threatens to worsen an economic slowdown.

Interbank loans were recorded in the final hour of trading on both June 20 and 21 at below-market rates, according to data compiled by Bloomberg. The People’s Bank of China said the nation should “appropriately fine-tune” its policies, according to a statement yesterday that summarized the monetary policy committee’s second-quarter meeting in Beijing. The monetary authority gauged demand for sales of repurchase agreements and reverse-repo contracts this morning, according to a trader at a primary dealer required to bid at the auctions.