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Shanghai overnight interbank rate falls to lowest level since 2009

[SHANGHAI] The Shanghai Interbank Offered Rate (SHIBOR) for the overnight tenor fell to a decade low of 0.9910 per cent on Wednesday, as liquidity in the banking system remained ample.

The rate was the lowest since June 2009.

Declines in the funding cost reflected flush cash conditions following persistent central bank injections via open market operations last week to keep liquidity sufficient for the end-June peak season for cash.

The volume-weighted average of the benchmark repo for the same tenor traded in the interbank market was also hovering at the lowest level in 10 years. It traded at 0.9806 per cent as of 0334 GMT.