(Yicai Global) Oct. 12 -- China's central bank, the People's Bank of China (PBOC), withdraws CNY40 billion (USD6 billion) from the financial system via open market operations today.
PBOC injected CNY20 billion of liquidity into financial system by conducting 7-day reverse repos, but offset by CNY 60 billion previous reverse repos maturing today.
The 7-day reverse repo bid rate was 2.45 percent, unchanged from the last open market operation.
Despite the PBOC's withdrawal of funds, liquidity in interbank market seem to be adequate. The overnight Shanghai Interbank Offered Rate (SHIBOR) declined 8.40 basis points to 2.6570 percent.
The one-week term rate declined 3.87 basis points to 2.8860 percent. The SHIBOR for 3-month loans edged up 0.26 basis points to 4.3581 percent.