China's Central Bank Drains Liquidity After Overnight Rate Surge.

The cash withdrawal came even as funding conditions tightened sharply in recent days due to month-end demand induced by tax payments and large government bond sales, with a trader reporting a surge to as high as 50% by the overnight rate in isolated transactions Tuesday. (Bloomberg) -- China's central bank withdrew cash from the financial system, suggesting it sees Tuesday's abrupt surge in short-term borrowing costs as a temporary disruption. [Extracted from the article]