PBoC stops injecting short-term liquidity
Decision adds to central bank’s recent efforts to tame rally in long-term government bonds
For the first time since 2020, the People’s Bank of China has not injected any short-term cash into the financial market on a business day, as it seeks to contain a rally in government bonds that pushed yields to a record low.
In a statement, the PBoC said it did not conduct any reverse repurchase (repo) agreement operations today (August 7), because “the overall amount of liquidity is reasonable and abundant”. It said it had made the decision based on the demand from primary dealers in the money
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