Economics
PBOC Rolls Over More Policy Loans Than Expected to Boost Growth
- Benchmark 10-year bonds reverse losses following MLF operation
- PBOC’s move to reduce funding was predicted by analysts
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China’s central bank rolled over most of its medium-term policy loans coming due, a move to support economic growth amid a resurgence of Covid cases. Government bonds reversed earlier losses.
The People’s Bank of China injected 600 billion yuan ($92.6 billion) into the financial system through its medium-term lending facility, close to the 700 billion yuan maturing Tuesday. About half of 13 analysts surveyed by Bloomberg prior to the operations predicted the PBOC would reduce the amount of funding to around 500 billion yuan.