BEIJING: China's central bank said on Monday it would start conducting temporary bond purchase agreements or reverse repos, depending on market conditions, to make open market operations more efficient and keep banking system liquidity ample.

The temporary repos and reverse repos will be loans with overnight tenors.

The interest rates of the temporary and reverse repos will be 20 basis points below and 50 basis points above the seven-day reverse repurchase operations, or 1.6% and 2.3%, respectively.

The central bank's overnight borrowing and lending operations will be performed in the afternoon of each working day based on market conditions, the People's Bank of China said.

 - Reuters