March 14, 2012 / 6:43 AM / 5 years ago

China money rates little changed, seen stable

* Dealers cite ample liquidity in market
    * Market stays cautious over open market operations
    * Seven-day repo hovers around 3 pct

    By Chen Yixin and Jacqueline Wong	
    SHANGHAI, March 14 (Reuters) - China's money rates
stood little changed on Wednesday with sentiment staying
cautious amid ample liquidity as traders kept an eye on open
market operations.	
    Dealers said money rates have little room to fall sharply
unless the authorities implement further easing measures, such
as cutting bank reserve requirement ratios.	
    "The money situation is quite good. We think the money rate
will not have much leeway to move sharply," said a dealer at a
Chinese commercial bank in Shanghai. 	
    The weighted-average seven-day bond repurchase rate
 inched down 0.12 basis point to 3.0003 percent by
midday from Tuesday's 3.0015 percent.	
    The 14-day repo rate was little changed at 3.0643 from
Tuesday's 3.0642, while the one-day repo edged down 0.41 bps to
2.3211 percent.	
    Dealers said market players were wary that the central bank
might drain a large amount of money via open market operations,
after it drained 66 billion yuan ($10.43 billion) in 28-day
repos on Tuesday.	
    On the bond market, the benchmark five-year IRS 
rose 4 bps to 3.36 percent and the one-year IRS was
up 3 bps at 3.13 percent.	
                                 Current  Prev close  Change	
                                      (pct)           (bps)  	
7-day repo         3.0003     3.0015      + 0.12	
7-day SHIBOR           3.0000     2.9958      + 0.42	
 Note: Repo rate is weighted average.	
    	
($1 = 6.3270 Chinese yuan)	
	
 (Reporting by Chen Yixin and Jacqueline Wong; Editing by
Michael Watson)

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