BEIJING (MNI) - The yield on the record CNY120 billion in three-month paper sold by the People's Bank of China (PBOC) on Thursday remained unchanged at 1.4088% for the sixth week in a row, traders said.

That sale and an earlier bond repurchase agreement brings the week's activity to a net drain of CNY82 billion, according to Market News International calculations, compared with last week's CNY59 billion drain.

The central bank earlier drained CNY83 billion via 91-day repos.

BEIJING (MNI) - The People's Bank of China set the yuan's central parity rate at 6.8263 to the U.S. dollar on Thursday, slightly higher than the previous day's central parity of 6.8264.

The yuan finished at 6.8259 against the US dollar on the over-the-counter (OTC) market Wednesday, up from Tuesday's close of 6.8263.

Based on today's parity, the yuan is up 0.21% y/y against the dollar, according to Market News International calculations.

FRANKFURT (MNI) - The European Central Bank's Governing Council has no opinion yet about the idea of a European Monetary Fund, ECB President Jean-Claude Trichet said on Wednesday.

However, Trichet, in comments to reporters following a speaking engagement, emphasized that any such fund would be a long-term project and not aimed at Greece, whose austerity program he called convincing.

FRANKFURT (MNI) - The confidence people have in the euro beyond Europe's borders is crucial, European Central Bank President Jean-Claude Trichet said late Wednesday.

At a ceremonial speaking engagement Trichet, according to a text provided in advance by the ECB, said, "The euro also has a recognized role beyond Europe. Also on the international stage, people have confidence in the euro as a currency. And this confidence is crucial."

FRANKFURT (MNI) - European Central Bank Governing Council member Axel Weber hinted that the ECB could alter its collateral framework after President Jean-Claude Trichet dodged question on potential changes last week and Ewald Nowotny called the current situation "unacceptable."

In the meantime, Council members have confirmed that the central bank's exit from non-conventional policy support is on track, while the mixed bag of economic data should reinforce the ECB's cautious approach.

DUBLIN (MNI) - The Eurosystem has made it clear that safeguarding price stability in the medium term is monetary policy's main objective, European Central Bank Governing Council member Axel Weber said Wednesday evening.

Speaking for the second time today in the Irish capital, the Bundesbank president explained that an "important" lesson for monetary policy from the crisis "is to keep a closer look on developments on financial markets, given their potentially large impact on inflation and output."

PARIS (MNI) - The ECB will remain very cautious in unwinding its non-standard liquidity measures, particularly until the expiration of the 12-month refinancing operation, Governing Council member Christian Noyer said in an interview released Wednesday.

Speaking to the French financial weekly l'AGEFI, the governor of the Bank of France also hailed the new consolidation efforts of the Greek government and ruled out the possibility of default.

PARIS (MNI) - The ECB will remain very cautious in unwinding its non-standard liquidity measures, particularly until the expiration of the 12-month refinancing operation, Governing Council member Christian Noyer said in an interview released Wednesday.

Speaking to the French financial weekly l'AGEFI, the governor of the Bank of France also hailed the new consolidation efforts of the Greek government and ruled the possibility of default.