The People’s Bank of China, or central bank, issued RMB 6 billion of 3-month bills at an unchanged yield of 3.1618% on Thursday.

The sharp fall in the 1-month benchmark interest rate on Tuesday focused the financial industry `s attention on whether the 3-month benchmark interest rate would change.

Judging from the primary and secondary market spreads, there is no need to control the amount in circulation through a reduction in interest rates, since the 3-month rate is not in hot demand, a trader from a commercial bank in Shanghai said.

China’s third quarter monetary policy report clearly shows that the government will maintain a prudent monetary policy. Meanwhile, moderate preset tuning should be carried out with a change in the economic situation.

Source:21cbh.com