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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