AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)

china-central-bankSHANGHAI: China's money rates extended their fall on Monday, with dealers reporting that banks are eager to lend amid expectations that the central bank will use reverse repos to maintain liquidity.

 

The PBOC surprised the market over the weekend by issuing five-day reverse bond repurchase agreements on Saturday.

 

 The central bank normally auctions seven-day repos on Tuesdays and Thursdays. The unusual five-day tenor allows the instrument to mature this Thursday, the same day as if a seven-day reverse repo had been auctioned on Thursday last week, when the market was closed for the New Year holiday.

 

The PBOC's auction was aimed at relieving the traditional year-end liquidity squeeze caused by elevated corporate and household cash demand around the New Year holiday.

 

"No matter which tenor it chooses, the central bank has shown its intention to continue reverse repo auctions, so the money situation should remain good," said a dealer at a Chinese commercial bank in Shanghai.

 

The benchmark weighted-average seven-day bond repurchase rate slumped 33 basis points to 3.18 percent, its lowest level since Dec. 24 and down from 3.50 percent at Friday's close.

 

The 14-day repo rate fell to 3.27 percent from 3.37 percent, its lowest point since Dec. 17, while the one-day repo rate dipped 5 bps to 2.14 percent.

 

In the rates market, interest rate swaps (IRS) fell on Monday, with the one-year IRS falling to 3.36 percent, from Friday's close of 3.40 percent, while the benchmark five-year IRS dipped to 3.73 percent from 3.77 percent.

Center>Copyright Reuters, 2013

Comments

Comments are closed.