China's primary money rates eased for the week on Friday as inflows into fixed-income products and ample liquidity combined to keep rates low. The volume-weighted average rate of the benchmark seven-day repo traded in the interbank market, considered the best indicator of general liquidity in China, was 2.2927 percent, down seven basis points (bps) on the week.
The one-day or overnight rate stood at 1.9846 percent, down 1 bps on the week and the 14-day repo stood at 2.6038 percent, down seven bps on the week.
Chinese fixed income has broadly outperformed in recent weeks after a regulatory clampdown on wealth management inflows into Chinese equities.
A weak global interest rate environment after Britain's unexpected decision to leave the European Union also has boosted the relative attractiveness of Chinese fixed income instruments.
Foreign inflows into Chinese onshore bonds reached their highest level in over two years in June, recently released central bank data showed.
Liquidity conditions in the money market, moreover, remained ample.
Although the central bank conducted its first net drain of funds since mid-July through open markets, the four-week net total remained strongly positive at 363.8 billion yuan ($54.75 billion).
The spread of the five-year credit default swap rate on Chinese sovereign debt fell 1.19 percent at 110.9.