Central Bank Lowers Expectations of Interest Rate Rise by Reducing Liquidity

The People's Bank of China auctioned off one-year bills worth a total of 75 billion yuan yesterday at a price of 98.11 yuan with a return rate of 1.9264%; the bank also repurchased 55 billion yuan worth of 28-day bills, reducing the money supply by 45 billion yuan. So far, the central bank has been withdrawing money from the market for ten weeks, lowering expectations that the deposit interest rate will rise in the short term.