CHINA'S KEY MONEY RATE FALLS NEAR 10-MONTH LOW.
China's key money rate fell to nearly a 10-month low, shrugging off a net drain in open market operations due to ample liquidity. China's central bank drained 20 billion yuan ($3.2 billion) from the money markets through 91-day bond repurchase agreements, meaning it drained a net 57 billion yuan from the market this week. The benchmark weighted-average seven-day bond repurchase rate fell 12.19 basis points to 2.8820 percent by midday, near a 10-month low struck earlier this week.
The 91-day repo yield fell 2 pips to 3.14 percent, the first fall in seven months, boosted by strong demand on abundant liquidity. "The 91-day result was lifted by strong demand, with ample money," said a dealer at a Chinese bank in Shanghai. "But the yield does not fall sharply, so it has little impact on our trading."