China's one-year interest-rate swaps snapped a six-day run of increases as the central bank signaled it will conduct reverse-repurchase agreements, after last week scrapping the cash injections for the first time since June.

The People's Bank of China on Wednesday gauged demand for an auction of seven- and 14-day reverse repos on Thursday, according to a trader at a primary dealer required to participate in such operations. It sold repurchase contracts last week for the first time in eight months, withdrawing funds from banks after they lent the most money in two years in January.

Five-year swaps climb to two-week high

More pep for interest rates

Premier calls for greater efforts on financial reforms

PBOC considers relaxing interest rate rules