PBOC Moves to Steady Bond Market as Downward Spiral Worries Grow

PBOC Moves to Steady Bond Market as Downward Spiral Worries Grow

China’s central bank ramped up its liquidity injection on Friday, moving to stem a bond selloff that’s raising the risk of a downward spiral which may destabilize financial markets.

China’s central bank injected 601.8 billion yuan to stop a growing bond selloff

China’s central bank dropped a bomb of cash on Friday. The People’s Bank of China (PBOC) pushed 601.8 billion yuan, about $84 billion, into the system using reverse repurchase agreements, trying to slow down a snowballing bond selloff before it smashes through the financial system. This was the bigg...