China’s Money Markets Ease as PBOC Acts to Avoid Liquidity Shock
- Injection of short-term cash this week is most since October
- PBOC would refrain from sizable monetary easing: Guosheng Sec.
The People's Bank of China (PBOC) building in Beijing.
Source: Bloomberg
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China’s money markets eased from recent highs, after the central bank provided liquidity to stem a bond selloff that threatened to spark panic among retail investors.
The overnight interbank funding cost is poised for its biggest weekly drop in six weeks, while yields on the one-year government bond fell by the most since August. The People’s Bank of China added short-term liquidity for a second day on Friday.