Monday, May 28, 2012

China key money rate rises; c.bank drains funds

* C.bank ste to drain 27 billion yuan via open market
* Small banks and institutions still need money on mth-end
* Key 7-day rates may move around 2.5 pct in coming days

By Chen Yixin and Pete Sweeney
SHANGHAI, May 29 (Reuters) - China's key money rates rose
slightly on Tuesday after the Chinese central bank started to
drain funds via open market operations.
China's central bank will drain 50 billion yuan ($7.88
billion) from the money markets through 28-day bond repurchas

escrow arrangement

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