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China central bank to inject 35 billion yuan via OMO, resuming 28-day tenor: traders

Published 06/11/2019, 09:33 PM
Updated 06/11/2019, 09:35 PM
© Reuters. Headquarters of the PBOC, the central bank, is pictured in Beijing

SHANGHAI (Reuters) - China's central bank said it will inject 35 billion yuan ($5.06 billion) through open market operations on Wednesday, traders said.

The People's Bank of China (PBOC) is injecting 15 billion yuan through seven-day reverse bond repurchase agreements and 20 billion yuan through 28-day reverse repos, according to the traders.

The last time the PBOC injected funds via the 28-day tenor was on Jan. 18.

On a net basis, the central bank will drain 25 billion yuan from the market for the day, as 60 billion yuan worth of reverse repos are set to expire on Wednesday.

Latest comments

Can someone explain this a little more? And how it affects the Chinese economy and it's position in the trade war?
From what i understand its a reverse bond repurchase or repo... meaning china bank will inject funds to spark lending/borrowing via offering liquidity. From what I gather Central bank will offer $5 billion worth of bonds for seven days and 28 billion for 28 days presumably at fixed rate
Biden should get his share
Ivanka should also get her share.
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