The auction yield on three-month bills has remained at 1.4088 percent since mid-January, when the central bank allowed it to rise 4 basis points during a campaign to clamp down on excessive bank lending.
The People's Bank of China (PBOC) is also draining 50 billion yuan via 91-day bond repurchase agreements on Thursday.
The PBOC is set to conduct a net drain of 115 billion yuan from the market for the week after draining a net 65 billion yuan last week.
Following is a summary of the volume of the central bank's bill sales and repo operations so far this week (billions of yuan):
Newly issued Maturing Net drain
_____________________________________________________
Bills
Tuesday 75
Thursday 20
Repos
Tuesday 55
Thursday 50
Bills maturing 55
Repos maturing 30
_____________________________________________________
TOTAL 200 85 115
($1=6.824 Yuan)
(Reporting by Qu Weizhi and Karen Yeung; Editing by Edmund Klamann)
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