PBOC skips 28-day repo sale, set for drain this week

SHANGHAI: China's central bank will not drain funds from the money markets through bond repurchase agreements on Tuesday, traders said. A total of 17 billion yuan ($2.7 billion)in central bank bills and repos are due to mature this week.

The People's Bank of China (PBOC) conducted a net drain of 73 billion yuan ($11.52 billion) last week.

PBOC will also mop up 26 billion yuan by selling one-year bills at about 10 a.m. (0200 GMT) on Tuesday, down from 38 billion yuan ($6.00 billion) of such bills sold last week.

The planned one-year bill issuance means that the central bank is on pace to conduct a net drain of at least 9 billion from the banking system this week.