China's short term interest rates continue to rise on December 23rd despite 300 billion renminbi injection by the central bank.
The seven-day bond repurchase rate, climbed to 8.8 percent in early trading, up about 60 basis points from its average on Friday.
The seven-day repurchase rate, rose as high to 10 percent on Monday, double the rate of a week earlier and the highest since it hit 11.62 percent on June 20 at the peak of China's summer cash crunch.
The People’s Bank of China, said late Friday that it had provided more than 300 billion renminbi (about $49.4 billion) in short-term liquidity operations (SLOs) to selected banks over a three-day period that week.
Liquidity is normally tight in China at the end of the year as corporate demand for cash rises and banks rush to book deposits on their balance sheets to meet regulatory requirements. The competition for deposits has been even bigger this year as bank-like institutions offer higher-yielding alternatives for savers.
12/23/2013 12:26:18 PM