Bond prices on China's interbank bond market are likely to correct Wednesday after the central bank drained 30 billion yuan out of the financial system via Tuesday's open market operations.
Chinese central bank sold 20 billion yuan 7-day reverse repos on open market but given the 50 billion yuan reverse repos expiry on Tuesday, it withdrew 30 billion yuan liquidity out of financial market.
Traders noted that the move to some extent depressed bond buyer's trading favor, which might further press down bond prices. On Tuesday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, lost 0.0361 percent to 162.6857 points.
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