SHANGHAI, Jan 26 (Reuters) - The volume-weighted average rate of China’s benchmark overnight repurchase agreements, or repo, traded in the interbank market rose to the highest level in more than 14 months on Tuesday, driven by tighter cash conditions.
The volume-weighted average of the overnight repo, considered one of the best indicators of general liquidity in China, jumped to 2.6890%, the highest since Nov. 18, 2019. The rate closed at 2.4955% on Monday.
Other tenors also following the rising trend. The volume-weighted average of the seven-day repo rose to 2.7091% as of 0228 GMT, the highest since Jan. 15, 2020, from 2.4218%.
Reporting by Winni Zhou and Andrew Galbraith; Editing by Christian Schmollinger
Our Standards: The Thomson Reuters Trust Principles.