China's money rates crept upwards Thursday but stayed within a narrow trading band that has held firm since the start of the month, as traders said rates were near a balanced level.
The benchmark weighted-average seven-day bond repurchase rate rose 2.92 basis points to 3.2325 percent from 3.2033 percent at the close Wednesday. The 14-day repo rate edged higher to 3.5009 percent from 3.4620 percent, and the one-day repo rate rose to 2.3233 percent.
Since the 7-day rate peaked at 4.317 at the end of October, the key borrowing rate has largely held in a narrow band between 3.1 and 3.3 percent, as traders cited an equilibrium of supply and demand.
As the market expected, the central bank roughly balanced fund drains and injections for the week in its open market operations Thursday, withdrawing a weekly net 24 billion yuan ($3.85 billion) from the system.
The bank injected 89 billion yuan in seven- and 14-day reverse repurchase agreements, adding to 114 billion yuan injected Tuesday.