The volume on offer compares with the CNY60 billion sold last week, an auction in which the yield rose to 1.3684% from the previous week's 1.3280%. That marked the first increase for the three-month yield since August 13.
Traders are expecting the three-month yield to rise again during tomorrow's auction as part of the PBOC's attempt to gradually tighten liquidity conditions in the banking system.
The PBOC sold CNY20 billion in one-year paper on Tuesday, with that yield also rising for the first time since August to 1.8434% from last Tuesday's 1.7605%.
The central bank surprised the market on Tuesday with the announcement of the first hike in the deposit reserve requirement ratio since June 2008. The 50 basis point increase takes effect on January 18.
The central bank drained a net CNY137 billion from the banking system last week.
