(Yicai Global) Oct. 16 -- China's interbank rates were a mixed bag today as the People's Bank of China resumed open market operations by issuing medium-term lending facilities to inject liquidity into the Chinese monetary system.
The overnight Shanghai Interbank Offered Rate moved 0.90 basis points lower to 2.6940 percent and the one-week rate rose 0.20 bips to 2.6860 percent. The SHIBOR for three-month loans edged 0.10 percent higher to 2.7320.
The central bank lent a total of CNY200 billion (USD28.2 billion) to several domestic banks via one-year MLFs at a bid rate of 3.3 percent today, the same rate as its last such operation. The PBOC had skipped OMOs since Sept. 29, just before the country's weeklong National Day Holiday.
MLF loans are one of several tools the central bank uses to manage monetary policy and lending. They have provided selected banks with funds since authorities stepped up efforts to support lending to certain sectors, rather than adding liquidity to the overall financial system.
The PBOC's MLF operations usually match the value of those instruments maturing in the same month.
Editor: Ben Armour