China's central bank on Wednesday pumped more money into the market for a third day this week to provide liquidity. The People's Bank of China (PBOC) conducted seven-day reverse repos worth 150 billion yuan (US$22.8 billion).
The reverse repos were priced to yield 2.25 %, unchanged from the injection on Monday and Tuesday with a total worth of 280 billion yuan. Reverse repos worth 65 billion yuan matured on Wednesday, so the central bank effectively injected 85 billion yuan into the market, bringing the net injection this week to 180 billion yuan.
This week, liquidity is relatively tight as companies pay taxes and commercial banks face the central bank's macro-prudential assessment as the second quarter ends.