Bond prices on China's interbank bond market are likely to increase Friday after the central bank's net liquidity injection via this week's open market operations. Traders noted that the People's Bank of China, China's central bank, injected a net 30 billion yuan into the financial system this week, which to some extent stabilized investors' near-term liquidity outlook and thus may further drive up bond prices.
The central bank conducted 35 billion yuan worth of 7-day reverse repos at a yield of 2.5 percent in Thursday's open market operations. On Thursday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, jumped 0.888 percent of gains to 163.1588 points.
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