Central bank drains 40b yuan from market

BEIJING - The central bank on Sunday allowed 40 billion yuan ($6.1 billion) to drain from the market.

The People's Bank of China (PBOC) put 70 billion yuan into seven-day reverse repos, a process by which central banks purchase securities from banks with an agreement to sell them back in the future.

The reverse repos were priced to yield 2.25 percent, according to a PBOC statement.

Reverse repos worth 110 billion yuan matured on Sunday, so the central bank has effectively drained 40 billion yuan from the market.