PBOC Moves to Steady Bond Market as Downward Spiral Worries Grow

China’s central bank pumped a sizeable amount of cash into its financial system Friday, a move seemingly intended to stop a bond selloff gaining momentum and destabilizing financial markets.

The People’s Bank of China put in 601.8 billion yuan ($84 billion) of short-term cash via reverse repurchase agreements, the largest daily net injection since January. Yields on China’s 30-year government bonds slipped after rising for seven straight days, while futures on similar-maturity debt halted the longest streak of declines in over two years.