Central Bank Refrains from OMO for Sixth Straight Day

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The People’s Bank of China refrained from conducting open market operations for the sixth consecutive trading day on Thursday, 1 February.

PBOC’s open market operations office said that overall liquidity in the banking system remained at a comparatively high level, and would be capable of absorbing the maturation of reverse repos.

A total of 80 billion yuan in liquidity was withdrawn from the system on 1 February, for a net withdrawal 1.06 trillion yuan during the past six day run.

Yesterday the overnight Shanghai Interbank Offered Rate (SHIBOR) rose by 4 basis points to 2.5950%, with modest fluctuations across the remaining tenors.

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