MLF

The interest rate on one-year AAA-rated NCDs has been persistently trading higher than the one-year MLF rate the central bank charges financial institutions since October.

It last traded at a near six-month high of 2.5711% on Friday, about 7 basis points higher than the one-year MLF rate of 2.5%.

"The changes in LPR are more affected by the MLF rate," Zhou said, expecting the LPR to stay unchanged this month.

Market participants typically see changes in the MLF as a precursor to changes in the LPR.

With 850 billion yuan worth of MLF loans set to expire this month, the operation resulted a net 600 billion yuan fresh fund injection into the banking system.