China's money rates continued to fall Monday on ample liquidity, as dealers await open market operations Tuesday for hints on how the central bank will manage the money supply going forward after a record liquidity crunch in late June.

The benchmark weighted-average seven-day bond repurchase rate fell 14 basis points (bps) to 3.67 percent from Friday's 3.8055 percent.

The 14-day repo rate slumped 60 bps to 3.68 percent, and the overnight repo rate dropped 12 bps to 3.25 percent.

"Market liquidity is now ample after banks paid in their regular reserve requirements last week," said a dealer at a State-owned commercial bank in Beijing.

Banks must adjust their reserve balances at the central bank on the 5th, 15th and 25th in order to meet the mandated reserve requirement ratios, with the amount of the payment or refund dependent on changes in their customer deposit balances.

The central bank has not engaged in open market operations for two weeks.

"There is large possibility that the central bank will restart the open market operations as it needs to balance market money supply," the State-owned bank dealer said.

The People's Bank of China surveyed banks for their demand for three-month bills, seven- and 14-day reverse repos and 28-day forward repo Monday.

China's central bank allowed short-term borrowing costs to spike to close to 30 percent on June 20, sending a blunt but effective message to overstretched banks that it was determined to bring risky lending under control.

Reuters