China\'s key money rate plummeted on Wednesday as the cash from Tuesday\'s central bank fund injection hit the market and traders reported anaemic demand for liquidity.
The benchmark weighted-average seven-day bond repurchase rate tumbled 60 basis points to 3.1611 per cent near midday, erasing most of its rise over the last two days.
\"Demand was pretty heavy yesterday, so the rate couldn\'t fall that much, but today no one is borrowing,\" said a trader at a joint-stock bank in Beijing.
The overnight rate also slid steeply, shedding 70.88 bps and dropping below the psychologically important 3.0 per cent mark to 2.6583 per cent near midday.
The benchmark weighted-average seven-day bond repurchase rate tumbled 60 basis points to 3.1611 per cent near midday, erasing most of its rise over the last two days.
\"Demand was pretty heavy yesterday, so the rate couldn\'t fall that much, but today no one is borrowing,\" said a trader at a joint-stock bank in Beijing.
The overnight rate also slid steeply, shedding 70.88 bps and dropping below the psychologically important 3.0 per cent mark to 2.6583 per cent near midday.