(Yicai Global) Oct. 18 -- China's interbank rates moved higher today despite the central bank injecting cash into the system via a reverse repurchase for the first time this month.
 

The overnight Shanghai Interbank Offered Rate moved 3.30 basis points higher to 2.6180 percent, and the one-week rate was up 2.80 bips at 2.6910 percent. The SHIBOR for three-month loans edged 1.00 percent higher to 2.7460.
 

The People's Bank of China, conducted a seven-day reverse repo of CNY30 billion today, with no previous reverse repos maturing today.

Reverse repo agreements are primary tools financial institutions and banks use to provide temporary lending facilities to fund ongoing operations, where a buyer undertakes to temporarily buy a basket of securities for a fixed period and to sell them back at a slightly higher price.

Editor: Ben Armour