On June 22, China's central bank stated that it would suspend bill issues in its regular open market operations on June 23, apparently due to an acute tightness in the money market.
China's benchmark money market rate, the seven-day repurchase rate nL3E7HM0AL surged to a multi-year high on June 22, indicating an ongoing market squeeze caused by the central bank's latest hike in the deposit reserve requirement ratio for domestic banks.
A total of RMB 88 billion ($13.5 billion) in central bank bills and repurchase agreements are due to mature this week. China's central bank effected a net injection of RMB 113 billion into the Chinese banking system last week.