China's central bank added a record 290 billion yuan ($46 billion) to the financial system using reverse-repurchase agreements, seeking to address a cash squeeze in the run-up to a weeklong holiday.

The People's Bank of China conducted 190 billion yuan of 28-day reverse repos and offered 100 billion yuan of 14-day contracts, according to a trader at a primary dealer required to bid at the auctions. Tuesday's total is the highest for a single day in Bloomberg data going back to 2004.

"Record amounts of reverse repos are to meet the surge in cash demand before the quarter-end and the holidays," said Liu Junyu, a bond analyst in Shenzhen at China Merchants Bank Co, the nation's sixth-biggest lender. "As the central bank steps up adding funds through reverse repos, it's unlikely to cut the reserve ratio this month."

The central bank kept the yields on 28- and 14-day reverse repos unchanged at 3.6 percent and 3.45 percent, respectively, the trader said.

China Daily-Agencies