China central bank drains short-term liquidity for first time in 8 days

SHANGHAI: China's central bank drained short-term liquidity from the banking system for the first time in eight days on Monday, as bond markets recovered from a recent sharp selloff.

The People's Bank of China (PBOC) injected 3 billion yuan ($418.96 million) through seven-day reverse repurchase agreements in open market operations on Monday. With 5 billion yuan worth of such loans maturing on the same day, it resulted a net withdrawal of 2 billion yuan.