China’s benchmark money-market rate fell to a two-week low on speculation there is enough cash in the system for the central bank to pull funds for a second week.
The People’s Bank of China sold 30 billion yuan ($4.9 billion) of 14-day repurchase agreements today at 3.7 percent, according to a statement on its website. There are 30 billion yuan of repo contracts that will mature and inject liquidity into the banking system this week. If the monetary authority sells more of the agreements in its open-market operations on Aug. 7 that will result in a net drainage of funds.
