China’s central bank refrained from selling repurchase agreements for the first time since July – the People’s Bank of China did not conduct any open-market operations in today’s auction window
- Loosening monetary policy further
- It last suspended sales of repos, which drain funds from the banking system, in the week of July 21
Becky Liu, a strategist at Standard Chartered Plc in Hong Kong:
- “It’s very likely the central bank will start reverse repos in December”
- “IPOs this week have brought volatility and, given the very limited amount of maturing contracts in the next couple of weeks, it’s no surprise that it suspended repos today”
More at Bloomberg
