China's one-day money rate jumped to a three-week high Thursday as corporates prepared for upcoming tax payments, but the key seven-day repo rate slid, showing ample funds in the market, dealers said.

The benchmark seven-day bond repurchase rate fell 9 basis points (bps) to 2.91 percent by midday, while the overnight rate jumped 20 bps to 2.21 percent, and the 14-day rate jumped 28 bps to 3.40 percent.

Dealers said there were major deposit outflows in April and May due to corporate tax payments. In those two months last year, firms paid a combined 700 billion yuan ($113.19 billion) in taxes.

"The key reason for the rise in the overnight rate is the tax payment, but the situation is not that bad, we still can borrow money," said a dealer at a Chinese bank in Shanghai.

The People's Bank of China conducted a net drain of 14 billion yuan via open market operations this week, but dealers said such a small amount has little impact on market liquidity and the central bank will continue to keep money condition accommodative in the near term.