Shanghai Interbank Rate Rises Despite PBOC's Reverse Repos Before Chinese New Year
Zhang Yushuo
DATE:  Dec 27 2018
/ SOURCE:  yicai

(Yicai Global) Dec. 27 -- The daily reference rates with which Shanghai banks offer each other funds rose today despite the fact that the central bank released more reverse repos to open markers from the day before. 

The overnight version of the Shanghai Interbank Offered Rate, also known as Shibor, fell 23.6 basis points to 1.7930 percent. The seven-day Shibor was up 2.3 basis points, at 2.6950 percent. The three-month rate climbed 3 basis points to 3.3390 percent.

The People's Bank of China issued CNY120 billion (USD4.3 billion) worth of 7-day reverse bond repurchase agreements to match the same sum of such agreements that will reach maturity today. The interest rate was unchanged at 2.55 percent from the day before. The number of 14-day reverse repos rose by one half to CNY30 billion. 

Chinese New Year is coming in less than 40 days, which may tighten liquidity, online news site Beijing Business Today reported, citing Xiao Lei, the president of a gold exchange information platform 500Gold. PBOC may continue to issue reverse repos to loosen the amount of available assets, Xiao added.

Editor: Emmi Laine

Follow Yicai Global on
Keywords:   Shibor