PBoC three-month bill yield above forecast

The People's Bank of China (PBoC) auctioned off US$7.3 billion of three-month bills in its regular open market operations on Thursday, Reuters reported. The central bank auctioned off the three-month bills at a yield of 1.0279%, which was above the predicted yield of about 0.9850%. Traders were predicting that the central bank would have allowed the auction yield to increase by about 2 basis points from last week's 0.9650%, after a positive trend in secondary market bill yields that has been fueled by a resumption of initial public equity offers. The PBoC is to conduct a net injection of US$4.61 billion into the market for the week, as US$23.64 billion in central bank bills and repos are set to mature.