China’s money-market rate rose for a second day on speculation cash supply will wane as banks hoard funds to prepare for the Lunar New Year holidays.
The People’s Bank of China gauged demand for seven and 14- day reverse-repurchase agreements, or contracts that are used to add funds to the financial system, according to a trader required to bid at the sales. The central bank said on Jan. 18 it will start short-term money operations to help regulate cash supply to supplement regular open-market auctions each Tuesday and Thursday. It named 12 lenders to participate.

Bloomberg