China c.bank to issue $6.2 bln in bills on Tuesday
(Reuters)
Updated: 2005-12-26 18:05

China's central bank will issue up to 50 billion yuan ($6.2 billion) in one-year bills in open market operations on Tuesday, up from 35 billion from a week ago, it said on Monday.

Yields on the bills would be decided by a public tender on Tuesday, the People's Bank of China said in a statement on its Web site (www.pbc.gov.cn), detailing its planned issue.

The central bank does not announce the planned amount for trading in repurchase agreements on the open market, though it absorbed 5 billion yuan by entering into 14-day reverse repos on Tuesday.

The central bank has strengthened its efforts to tighten liquidity on the banking systems since mid-October as it has tried to rein in money-supply growth.

China's M2 money supply grew 18.3 percent in the year through November, accelerating from 18.0 percent in the 12 months to October and topping a targeted growth rate of 17 percent for all of 2005.

The central bank conducts open-market operations with banks, insurers, brokerages and rural credit cooperatives on China's national interbank market in Shanghai.

The central bank typically issues one-year bills each Tuesday and three-month bills each Thursday. Bills of other maturities will be sold as and when necessary, it has said.

It can conduct reverse repos on Tuesdays and Thursdays.

For information on reference rates for central bank bills, treasury bonds and sovereign bonds, please click on . ($1=8.0755 yuan)