China's central bank issued 120 billion yuan in one-year bills yesterday, setting a record for one-day issuance, The Beijing News reports. The market kept the interest rate at 1.8330%. The bank customarily circulates currency before the Spring Festival for the consumer spending high tide that follows, and withdraws it again after the holiday is over. Still, the size of this issuance caught observers by surprise. In the view of most analysts, one motivation is that this week, 118.3 billion in RMB buyback and 105 billion yuan worth of prior bills come due; the 120 billion in new bills would go a ways toward compensating for the expiration of this capital.Previously, large bill issuances had resulted in increased yields on the market, but on this occasion, the current state of the market was too relaxed, and rates remained at 1.8330%.Link: http://economy.thebeijingnews.com/0392/2006/0208/011@159237.htm