Oct 21, 2019
China Injects $35 Billion Into Banking System Amid Tax Payments
Bloomberg News
,(Bloomberg) -- China’s central bank added 250 billion yuan ($35 billion) into the banking system, the largest amount in a daily open market operation since May.
The People’s Bank of China net injected the cash via seven-day reverse repurchase agreements, according to two traders at primary dealers. There were no facilities coming due Tuesday.
The move comes before a deadline for corporates to pay tax, which typically increases the demand for cash and tightens liquidity. China’s 10-year bond yield was little changed at 3.22%.
To contact the reporter on this story: Sofia Horta e Costa in Hong Kong at shortaecosta@bloomberg.net
To contact the editor responsible for this story: Richard Frost at rfrost4@bloomberg.net
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