Trading volume in China's money market rose 7.5 percent year on year in November in tandem with rising interest rates before the year-end, the People's Bank of China said in a statement Monday.

Total turnover in the money market stood at 17 trillion yuan (US$2.8 trillion) in November. Interbank lending shed 29.7 percent year on year to 2.7 trillion yuan, the central bank said yesterday in a statement posted on its official website.

The Shanghai interbank offered rate (Shibor) gained 29 basis points to 4.12 percent on average during November, while bond repurchase rates added 26 basis points to 4.12 percent.

The Shibor and repo rates are important gauges of fund availability in the money market.

The short-term Shirbor rates and repo rates continued to increase in December and soared to six-month highs last Monday amid a market liquidity squeeze, as commercial banks amassed cash to meet year-end regulatory requirements.

The spikes in money market rates eased after the PBOC injected funds through open market operations and short-term liquidity operations. It emphasized on its official weibo account last week that there's ample liquidity in the banking system.

The excess reserves, or cash above the reserve requirement that banks hold in their accounts at the central bank, were above 1.5 trillion yuan — a high level by historical standards, the PBOC said.

The one-week Shibor shed 22.6 basis points to 4.841 percent yesterday, below its 20-day average of 5.2443 percent.