The People’s Bank of China injected medium-term cash into the financial system, in a push to keep borrowing costs low, Bloomberg reports.
The bank added 100 billion yuan (US$15.5 billion) of one-year funds with its medium-term lending facility on Monday, matching the amount coming due in a move that was expected by analysts. The authorities kept the interest rate unchanged at 2.95 percent.
The operation, which is usually conducted once around the middle of every month, could further support Chinese sovereign bonds, coming soon after the country’s 10-year government yield and benchmark money-market rate both recently touched a four-month low.
The notes have gained for three weeks in a row, the longest run since January. That’s even as Treasury yields have climbed and a surprisingly quick jump in the nation’s factory-gate prices were seen to pose a challenge to current monetary policy.