China's central bank continued to ease liquidity strains in the financial system on Thursday, injecting 400 billion yuan ($60.8 billion) of funds through reverse repurchase (repo) operations.
The People's Bank of China (PBOC), the central bank, conducted a 7-day reverse repo worth 110 billion yuan and a 28-day reverse repo worth 290 billion yuan on Thursday, with yields priced at 2.25 percent and 2.6 percent, respectively.
In a reverse repo, the central bank buys securities from banks with an agreement to resell them in the future.
The move followed reverse repo operations worth 155 billion yuan on Tuesday. The PBC also conducted short-term liquidity operations on Monday and Wednesday, pumping 205 billion yuan into the money market.
The central bank said earlier this week it would inject more than 600 billion yuan through such tools as the standing lending facility, medium-term lending facility and pledged supplementary lending, aimed at easing the liquidity squeeze expected before the upcoming Spring Festival holiday week, which begins on the Lunar New Year's eve on February 7.
