PBOC Offers 404 Billion Yuan Loans in Move Seen Steadying Market
- MLFs help keep neutral weekly position in money market
- Loan injections meant to deter pessimism, says OCBC’s Xie
This article is for subscribers only.
China’s central bank moved to stabilize money supply Friday, capping a week that began with a bond rout and more than 1 trillion yuan ($151 billion) of loans due to mature.
The People’s Bank of China offered 404 billion yuan of one-year funds under the Medium-Term Lending Facility, compared with 207 billion yuan of maturities, according to a statement on the monetary authority’s website. That takes total injections this week -- through MLFs and reverse-repurchases agreements -- to just over 1 trillion yuan, slightly exceeding the amount due. Friday’s MLFs were offered at 3.20 percent, unchanged from the previous operation.