China benchmark money rate spikes in morning trade

SHANGHAI, March 5 Tue Mar 4, 2014 9:57pm EST

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SHANGHAI, March 5 (Reuters) - China's benchmark seven-day bond repurchase rate opened at 3.8 percent on Wednesday, rising 80 basis points from Tuesday's close after the central bank assertively drained funds from money markets on Tuesday.

The People's Bank of China moved to mop up excess liquidity after key rates showed signs of sliding too far, with the weighted average rate of seven-day repos hitting a low of 2.843 percent on Monday, its lowest rate since May 2013.

The PBOC responded by draining 85 billion yuan ($13.84 billion) on Tuesday, putting upward pressure on rates. ($1 = 6.1430 Chinese yuan) (Reporting by Pete Sweeney; Editing by Paul Tait)