China's central bank Tuesday conducted the largest single-day fund injection to financial institutions in seven weeks.

The People's Bank of China injected 110 billion yuan (US$17.6 billion) to the market through a 28-day reverse repurchase contract yesterday, the most since November 6, according to a statement on its website. The yield on the securities was 3.6 percent, flat from the previous sale.

"With the central bank injecting liquidity through reverse repurchase, the liquidity at year-end will remain relatively easy," Huatai Securities Co said in a note yesterday.

Last week, the PBOC injected a net 92 billion yuan through open market operations.

The daily fixing of the seven-day bond repurchase rate, an indicator of market liquidity, jumped 64.7 basis points to a 2-month high of 3.8120 percent yesterday from 3.1790 percent on Monday.

But the weighted average rate stands at 3.05 percent so far in December, 85 basis points lower than the same month last year, the broker said.

Dealers told Reuters that the seven-day money rate may dip in coming days but the 14-day tenor is likely to hover at a relatively high level as demand for funds could rise.