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The volume-weighted average rate of China’s benchmark overnight repo has declined to 2.55% from the five-year high of 3.13% on Friday. 

The short-term money rates spiked after the People’s Bank of China unexpectedly sucked out a net 78 billion yuan (US$12 billion) via open-market operations early last week. 

The central bank responded by launching a CNY 5 billion facility on Friday, allowing banks to pledge perpetual bonds to obtain three-month liquidity, according to regulationasia.com. 

The yuan is currently trading at 6.46 per US dollar. The Chinese curency gained ground on Thursday and Friday, possibly tracking the uptick in the money market rates.