SHANGHAI: China's money rates were mixed on Monday, with an abundance of liquidity offset by caution ahead of Tuesday's central bank open market operations, traders said.
The benchmark seven-day bond repurchase rate fell 5 basis points to 3.27 percent near midday, but the overnight rate rose 16 bps to 2.19 percent, while the 14-day repo rate gained 8 bps to 3.10 percent.
Traders were confident that money conditions will remain comfortable in the near term, in part due to heavy capital inflows into China this year, driven by large-scale quantitative easing by the US Federal Reserve and other Western central banks since the second half of 2012.
In the latest bout of such easing, the Bank of Japan unleashed the world's most intense burst of monetary stimulus on Thursday, promising to inject about $1.4 trillion into the economy in less than two years.
"Japan's latest aggressive easing will surely push more money to flow into Chinese markets, although the impact will be gradual," said a dealer at a Chinese commercial bank in Shanghai.
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