PBOC to auction three-year bills

The People's Bank of China will auction 90 billion yuan worth of three-year bills in its open market operations starting from Thursday.

The figure will increase sharply from 15 billion at the previous sale of such bills on April 8th.

At the same time, the central bank also said it will auction 23 billion yuan of three-month bills Thursday. The issuance of three-year bills was resumed two weeks ago after a nearly two-year suspension during the financial crisis.

On Tuesday, the PBOC drained 40 billion yuan via a sale of one-year bills and mopped up another 75 billion yuan through 28-day bond repurchase agreements. It may also drain funds via short-term repos Thursday.