China's central bank on Tuesday was to pump a total of 160 billion yuan into the markets to maintain holiday liquidity. The People's Bank of China said it would inject 70 billion yuan or US$10.48 billion, through seven-day reverse repurchase agreements. The PBOC said it would also inject 30 billion yuan through 14-day reverse repos and an additional 60 billion yuan through 28-day reverse repos.

The 28-day facility was adopted for the first time since January and the PBOC also lowered its guidance rate from 2.60 percent to 2.55 percent. A total of 60 billion yuan in PBOC outstanding reverse repo agreements were to mature today. The central bank said the money injection is being deployed to avoid any holiday cash crunch ahead of the week-long National Day holiday that begins October First.