China’s Central Bank Returns to Bond Market With Small Purchases

China’s central bank made a small government bond purchase in October, its first such operation this year, as it revived another tool to support the economy.

The People’s Bank of China net injected 20 billion yuan ($2.8 billion) of liquidity via buying government bonds, according to a statement on its website, which did not provide details on tenors or dates of operation. PBOC Governor Pan Gongsheng said in late October that the central bank would resume its bond-trading program, noting that market conditions had improved enough to allow trading to restart.