China's overnight repo rises to 2-month high on liquidity tightness

SHANGHAI : China's volume-weighted average rate of overnight repo traded in the country's interbank market rose to 2.2749per cent on Tuesday morning, the highest level since June 22.

Signs of liquidity tightness came as higher market worries over a recent acceleration in local government bond issuance that could drain cash from the banking system.

(Reporting by Winni Zhou and Andrew Galbraith; Editing by Himani Sarkar)