China c.bank repo rate rises at operation due to IPO

SHANGHAI, June 30 - China's central bank said the rate on 28-day bond repurchase agreements in Tuesday's money market operation rose to 0.95 percent from 0.90 percent in the last such operation two weeks ago.

Traders said the rise reflected expectations of tighter liquidity after a resumption of equity IPOs.

The rate for 91-day repos in Tuesday's operation rose to 1.0 percent from 0.96 percent in the previous operation for repos with that maturity on April 21.

The central bank drained 50 billion yuan via 28-day repos and 30 billion yuan via 91-day repos on Tuesday.

Demand at the operations was undermined by the nation's first initial public offer of equities since September. Traders did not think the rise in repo rates indicated a move by the central bank toward a tighter monetary policy.

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