China’s Money Rates Decline as PBOC Lowers Yield at Repo Auction

China’s interest-rate swaps declined as the central bank guided borrowing costs lower in its open-market operations for the first time in 11 months.

The People’s Bank of China said it offered 26 billion yuan ($4.2 billion) of 14-day contracts today at 3.7 percent, down from 3.8 percent when the agreements were last sold on April 15. In that interim period, it conducted 28-day repos paying 4 percent. The previous rate reduction was for seven-day reverse-repos in August 2013. Open-market operations drained a net 11 billion yuan from banks this week, after 11 weeks of injections that added 528 billion yuan.