China's money rates were mixed Wednesday as a recent slowdown of capital inflows illustrated by March's trade deficit - was offset by the system's still-abundant liquidity and optimism over future supply, traders said.

The benchmark seven-day bond repurchase rate dropped nearly 7 basis points (bps) to 3.2 percent by midday, while the overnight rate slipped 2 bps to 2.13 percent but the 14-day rate rose 8 bps to 3.23 percent.

China reported a trade deficit of $884 million in March as a forecast-busting 14.1 percent year-on-year surge in imports eclipsed export growth of 10 percent.

"Money supply still slightly exceeds demand for now," said a trader at a Chinese commercial bank in Shanghai.

"This is a continuation of general easy money conditions in the markets this year," the trader said.

On Tuesday, the People's Bank of China injected a net 11 billion yuan ($1.78 billion) into the markets.