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Central bank to issue 51b yuan 1-yr bills

By Qiang Xiaoji (chinadaily.com.cn)
Updated: 2010-11-02 11:00

The People's Bank of China (PBOC), the central bank, will issue a total of 51 billion yuan ($7.58 billion) one-year bills on Tuesday, up 11 billion yuan from last week's issuance and the biggest in seven successive weeks, Shanghai Securities News reported.

Manufacturing continues to expand Related readings:  Central bank sells 3-month bills at unchanged yield  China's central bank sells 56b yuan 1-year bills  China's central bank issues 24b yuan 1-yr bills

With bills and repos maturing this month, a total of 302.5 billion yuan will be injected into the market, only about half of last month's injection. The decreasing injection will contribute to the central bank's action of withdrawing liquidity in its open-market operations, the report said.

A total of 65.5 billion yuan worth of bills will mature this week, but Tuesday's issuance will soak up about 80 percent of the liquidity, which will lead to a net withdrawal as a result, and the amount of withdrawals may even go up.

PBOC's continuing net withdrawal has not affected the liquidity of the market, the newspaper said.