Central Bank to issue $4.3 bln in bills Tuesday
(Reuters)
Updated: 2005-11-07 14:24

SHANGHAI, Nov 7 (Reuters) - China's central bank will issue up to 35 billion yuan ($4.3 billion) in one-year bills in open market operations on Tuesday, up from 30 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 the planned issue.

The bank does not announce the planned amount for trading in repurchase agreements on the open market. It absorbed 10 billion yuan by entering into 28-day reverse repos last Tuesday.

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

It typically issues one-year bills on Tuesday and three-month bills on Thursday. The bank says any sales of three-year notes, which began in December, will take place on Thursdays. Its last sale of three-year notes was on May 26.

Bills of other maturities will be sold as and when necessary, according to the central bank's issuance schedule outlined on the Web site of China's money market (www.chinamoney.com.cn).

The central bank can conduct reverse repos on Tuesdays and Thursdays.

Before public holidays, it occasionally enters into repurchase agreements to help banks tide over temporary cash squeezes.

For information on reference rates for central bank bills, treasury bonds and sovereign bonds, please click on . ($1=8.0856 yuan)