Record 860b Yuan Injected via Reverse Repos-Shanghai Metals Market

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Record 860b Yuan Injected via Reverse Repos

Industry News 11:01:41AM Feb 08, 2013 Source:SMM

Updated: 2013-02-08 (China Daily) - China injected a record 860 billion yuan ($138 billion) into the financial system using reverse repurchase agreements this week to meet rising demand for cash before a week-long Spring Festival holiday.

The People's Bank of China injected 410 billion yuan using 14-day reverse repos on Thursday, after adding 450 billion yuan on Tuesday. The overnight money-market rate climbed for an eighth day, the longest run of increases in almost a year.

"The PBOC injection is in reaction to liquidity needs," said Frances Cheung, a strategist at Credit Agricole CIB in Hong Kong. "It is natural for cash demand to pick up before the Chinese New Year."
 

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1# Zinc
Dec.10
18340.0
-110.0
(-0.60%)
0# Zinc
Dec.10
18410.0
-110.0
(-0.59%)
T/C for Domestic Zinc Concentrate
Dec.01
6275.0
0.0
(0.00%)
T/C for Imported Zinc Concentrate
Dec.01
310.0
30.0
(10.71%)
Zinc Alloy (Zamak5/ZX03)
Dec.10
19610.0
-110.0
(-0.56%)

Record 860b Yuan Injected via Reverse Repos

Industry News 11:01:41AM Feb 08, 2013 Source:SMM

Updated: 2013-02-08 (China Daily) - China injected a record 860 billion yuan ($138 billion) into the financial system using reverse repurchase agreements this week to meet rising demand for cash before a week-long Spring Festival holiday.

The People's Bank of China injected 410 billion yuan using 14-day reverse repos on Thursday, after adding 450 billion yuan on Tuesday. The overnight money-market rate climbed for an eighth day, the longest run of increases in almost a year.

"The PBOC injection is in reaction to liquidity needs," said Frances Cheung, a strategist at Credit Agricole CIB in Hong Kong. "It is natural for cash demand to pick up before the Chinese New Year."