PBOC Cuts Daily Cash Injection to 200 Million Yuan as Bond Rally Drives Yields to 10-Month Lows
Updated
Updated · Bloomberg · Jun 2
PBOC Cuts Daily Cash Injection to 200 Million Yuan as Bond Rally Drives Yields to 10-Month Lows
1 articles · Updated · Bloomberg · Jun 2
200 million yuan in seven-day reverse repos on Tuesday marked the PBOC’s smallest-ever daily open-market operation, signaling a sharper effort to drain excess liquidity.
248.8 billion yuan was withdrawn on a net basis because the tiny injection barely offset funds maturing that day in the banking system.
Benchmark Chinese bond yields have fallen to their lowest since August as the rally deepened, giving the central bank reason to curb cash conditions rather than add support.
As China’s liquidity engine stalls, is a global financial shock now inevitable?
Withdrawing cash while consumption is weak, what is Beijing’s hidden economic endgame?