Economics
China’s Central Bank Boosts Liquidity Ahead of Tax Payment Surge
- Government bond yields rising amid waning easing bets
- PBOC signaling no major stimulus as government seeks balance
Photographer: Tomohiro Ohsumi/Bloomberg
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China’s central bank used open-market operations to inject the largest amount of cash into the banking system since May, as upcoming corporate tax payments tighten liquidity conditions.
The People’s Bank of China on Tuesday net injected 250 billion yuan ($35 billion) via seven-day reverse repurchase agreements, according to a statement. There were no facilities coming due Tuesday, and the central bank kept the rate steady at 2.55%. China’s 10-year bond yield was little changed at 3.22%.