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PBOC suspends reverse repos

China's central bank suspended open market operations on Tuesday, in a sign of policy tightening. The People's Bank of China withdrew 70 billion yuan ($10 billion) from the market on Tuesday, as reverse repurchase agreements matured. Reverse repos is a process by which central banks purchase securities from banks with an agreement to sell them back in the future. "There was an increase of fiscal spending at the end of last month and liquidity in the banking system remains at a moderate level. The central bank will not conduct reverse repos on Tuesday," according to a statement on the PBOC's website. The central bank has conducted open market operation reverse repos for nine consecutive days.

Yuan weakens against US dollar