China’s money-market rate reached a two-month high as the central bank refrained from injecting cash in open-market operations for the third auction in a row thanks to signs of a stabilizing economy, Bloomberg reported. As of October 17, the People’s Bank of China suspended selling reverse-repurchase contracts after offering seven- or 14-day agreements for more than three months. The seven-day purchase rate rose 65 basis points to 4.67%, the biggest increase since July 29, according to the National Interbank Funding Center. The yield on government bonds due August 2023 increased six basis points to 4.21%, the highest for a benchmark 10-year note since September 2008.
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