SHANGHAI: China's money rates stood little changed on Wednesday with sentiment staying cautious amid ample liquidity as traders kept an eye on open market operations.
Dealers said money rates have little room to fall sharply unless the authorities implement further easing measures, such as cutting bank reserve requirement ratios.
"The money situation is quite good. We think the money rate will not have much leeway to move sharply," said a dealer at a Chinese commercial bank in Shanghai.
The weighted-average seven-day bond repurchase rate inched down 0.12 basis point to 3.0003 percent by midday from Tuesday's 3.0015 percent.
The 14-day repo rate was little changed at 3.0643 from Tuesday's 3.0642, while the one-day repo edged down 0.41 bps to 2.3211 percent.
Dealers said market players were wary that the central bank might drain a large amount of money via open market operations, after it drained 66 billion yuan ($10.43 billion) in 28-day repos on Tuesday.
On the bond market, the benchmark five-year IRS rose 4 bps to 3.36 percent and the one-year IRS was up 3 bps at 3.13 percent.
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