Curbing excess domestic liquidity

Measures such as low long-term deposit rates and investment spree only help wealth flow to certain interest groups

The People's Bank of China issued two sets of bills on Thursday at opposite rates, as domestic banks faced with tighter monetary conditions seek higher returns from longer tenors.

The central bank set the yield for 6 billion yuan of three-month bills at 1.4492 percent, or a rise of 4 basis points, a move that reflected extremely weak demand from domestic banks.