China’s benchmark money-market rate fell to a 20-month low on Thursday, Bloomberg reported, citing a statement by the country’s central bank. The People’s Bank of China sold US$8.2 billion (RMB50 billion) of 28-day repurchase agreements and US$7 billion of 14-day repos today, bringing net withdrawals for the week to US$11.5 billion. The seven-day repurchase rate, a gauge of funding availability, slid 133 basis points, or 1.33 percentage points, to 2.48% in Shanghai. Liquidity is expected to remain abundant for now as policymakers push for more two-way volatility in the yuan.
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