SHANGHAI, July 30 (Reuters) - The volume-weighted average price (VWAP) for China's benchmark seven-day bond repurchase agreement opened at 4.9697 percent on Tuesday, down from the previous close of 5.1165 percent, after the central bank injected funds into the interbank market for the first time since early February.
The opening VWAP rate was calculated based on the first three transactions recorded for that contract.
Market players are keeping a close eye on Chinese interbank market rates after tightness in the money markets in June caused a cash crunch for banks and led to a slide in mainland stock indexes.
The central bank issued 17 billion yuan worth of seven-day reverse repos this morning. Reverse repos inject cash on issuance and drain on maturity.
The People's Bank of China is set to allow 85 billion yuan ($13.86 billion) to enter the interbank market this week through maturing bills.
($1 = 6.1325 Chinese yuan) (Reporting by Pete Sweeney; Editing by Jacqueline Wong)