SHANGHAI: China's central bank will drain 20 billion yuan ($3.25 billion) from the money markets through 14-day bond repurchase agreements on Tuesday, traders said, meaning it will drain a net 5 billion yuan from the market this week.

The interbank market will be closed from Oct.1 to Oct. 7 due to the National Day holiday. Trading will resume on Oct. 8.

The People's Bank of China (PBOC)conducted a net drain of 11 billion yuan from the banking system last week.

Maturing repos will inject a net 15 billion yuan into the banking system this week.

Copyright Reuters, 2014