SHANGHAI: China's money rates were little changed on Monday, with traders expecting liquidity to remain ample as the amount of maturing reverse repos draining funds this week will fall sharply.
This week, maturing central bank bond reverse repurchase agreements will drain a net 102 billion yuan ($16.34 billion), down from last week's 262 billion yuan and the lowest level since mid-August.
Dealers said they expected cash requirements over the year-end could boost demand for 28-day reverse repos this week, but added that the central bank was only likely to carry out minor fine-tuning through open market operations.
"The money situation is good. Demand is centred on the year-end, so the appetite for 28-day reverse repos should be strong this week," said a dealer at a Chinese commercial bank in Shanghai.
The benchmark weighted-average seven-day bond repurchase rate inched up 2.50 basis points to 3.0263 percent from 3.0013 percent at the close on Friday, when it jumped more than 30 bps.
The 14-day repo rate rose to 3.0736 percent from 3.0355 percent, and the one-day repo rate was almost flat at 2.2673 percent from 2.2654 percent.
Dealers said the demand for key seven-day and 14-day repos is still weak, meaning a small number of trades could cause a sharp rise or fall at these tenors.
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