interbank

The price of the benchmark seven-day repos traded in the interbank market, hit a high of 2.8% on Monday, the highest level since Oct.

NCDs has been a popular short-term debt instrument used by financial institutions in the interbank market for financing.

Sources told Reuters earlier this month that China's central bank asked some lenders to cap interest rates on an interbank debt instrument, referring to the rising short-term yields on bank debt and strains in funding markets.

"The interbank money market now relies heavily on reverse repos, and bank's willingness to lend to their peers is low, and this may be one of the factors that triggers fluctuations in the funding costs towards the month-end," Liu Yu, analyst at GF Securities.

The steady fixings came after the central bank kept its medium-term interbank liquidity rate unchanged last week.