SHANGHAI: China's money rates moved in a small range and continued to hover at low levels as ample liquidity capped the market, dealers said.
"Almost all the banks are busy lending funds," said a dealer at a Chinese bank in Shanghai.
"The seven-day money rates rose at the beginning of trade, but I saw some big banks set the (7-day) price around 2.5 percent, which means they still think money will be ample this week."
The benchmark, weighted-average seven-day bond repurchase rate inched up 2 basis points to 2.75 percent from 2.73 percent on Friday. It touched 3.0 percent briefly at the beginning of trade.
The 14-day repo rate slipped to 2.72 percent from 2.85 percent, and the one-day repo rate fell to 2.06 percent from 2.08 percent.
Dealers told Reuters that the central bank would continue to use seven- and 14-day reverse repos to support market liquidity this week, but it may hold off on issuing more 28-day reverse repos given the upcoming Spring Festival holiday.
Market participants said such a suspension showed the central banks' intention to avoid bonds that mature during the holiday week starting on Feb. 9, during which times markets and most of the country shuts down to celebrate the beginning of the Chinese New Year.
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