The benchmark money-market rate in China jumped the most in two months on speculation the central bank will drain funds from the financial system to cap property prices and inflation.
China may tighten monetary policy because of excessive market liquidity and rising real-estate prices, according to a front-page commentary in the China Securities Journal.
The People's Bank of China sold 5 billion yuan ($803 million) of 28-day repurchase contracts at a yield of 2.75 percent on Tuesday, according to a trader at a primary dealer required to bid at the auctions.
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