Economics
PBOC Drains Funds Using Repos for First Time in 8 Months
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China’s central bank sold repurchase contracts for the first time since June, draining funds from the banking system as money-market rates sink to the lowest levels in at least three months.
The People’s Bank of China conducted 48 billion yuan ($7.9 billion) of 14-day repurchase contracts at 3.8 percent today, according to a statement posted on its website. The monetary authority last issued such contracts on June 6, when it sold 10 billion yuan of 28-day repos. Today’s rate is higher than both the 2.75 percent in the June auction and the 2.05 percent when the PBOC last issued 14-day repos in January 2011.