The People’s Bank of China (PBoC) has drained a net 40 billion yuan (US$6.52 billion) from the financial system this week, according to data available on its website. On Thursday, the central bank sold 100 billion yuan worth of repurchase agreements (repos), similar to the amount it sold on Tuesday. The Thursday paper was sold at 4.0 percent yield with maturity of 28 days. As 160 billion yuan of repos are maturing this week, there will be net drain of 40 billion yuan from the market this week.
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