SHANGHAI, May 10 (Reuters) - China's central bank said on Monday that it would auction 14 billion yuan ($2.1 billion) of one-year bills in its open market operations on Tuesday, down from 20 billion yuan of such bills sold last week. A total of 216 billion yuan in central bank bills and repos will be due this week but the authorities are already set to conduct a net drain of funds from the market for the week as China's third hike in banks' reserve requirement ratios this year took effect on Monday and absorbed about 300 billion yuan from the banking system. Last week the People's Bank of China conducted a net drain of 22 billion yuan from the market. Following is a summary of the volume of the central bank's bill sales and repo operations so far this week (billions of yuan): Newly issued Maturing _______________________________________ Bills Tuesday 14 Thursday TBA Repos Tuesday TBA Thursday TBA Bills maturing 156 Repos maturing 60 _______________________________________ Total so far 14 216 TBA: to be announced ($1=6.825 Yuan) (Reporting by Karen Yeung; Editing by Edmund Klamann) ((karen.yeung@thomsonreuters.com; +86 21 6104 1783; Reuters Messaging: karen.yeung.reuters.com@reuters.net)) Keywords: CHINA OPENMARKET (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.
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