China Ramps Up Liquidity Injection Amid Bond Market Turmoil
- PBOC net injects 150 billion yuan via medium-term loans
- Latest liquidity support seen easing money-market stress
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China’s central bank pumped more cash than forecast into the banking system in December, in a move that’s expected to bolster bonds roiled by the nation’s abrupt Covid policy shift.
The People’s Bank of China injected 650 billion yuan ($94 billion) via its one-year medium-term lending facility on Thursday, more than the 500 billion yuan due this month. Five out of the eight economists surveyed by Bloomberg prior to the operation expected a rollover of just the maturing amount. It’s the first net injection of cash via MLF since March.