China money rates rise on cash demand, but loosening seen ahead

China’s primary money rates
rose this week on higher cash demand for mid-month corporate tax
payments, and as the central bank made no net cash injections or
withdrawals into money markets for a second straight week.
Despite the rise in rates, a well-received finance ministry
auction put pressure on bond yields on Friday amid growing
expectations of weaker growth and further loosening ahead.
At the same time, the People’s Bank of China (PBOC) on
Friday st