Bond prices on China's interbank bond market are likely to rise Monday after the central bank extended its 6-month medium-term lending facility (MLF). China's central bank extended 250 billion yuan expired 6-month MLF to 11 banks at 3.35 percent interest rate on last Friday.
Traders noted that the move was to meet the banks' capital need and maintain the liquidity in banking system at a sufficient level, which will provide a support to bond prices. On Friday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, gained 0.0599 percent to 162.0296 points.
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