Money-market rate jumps the most in a month

China's money-market rate rose the most in a month on speculation that cash supply will wane after the central bank reined in sales of reverse-repurchase contracts.

The People's Bank of China offered 8 billion yuan ($1.3 billion) of seven-day reverse repos today, the least since July 5. A total 145 billion yuan of the contracts will be redeemed this week, including 95 billion yuan on Tuesday dating to China Merchants Bank Co data.

"Liquidity has turned a bit tight because the reverse-repo amount is much less than redemptions," said Guo Caomin, a bond analyst at Industrial Bank Co in Shanghai. "No one is clear about the PBOC's motivation behind this."

Agencies - China Daily