Bond prices on China's interbank bond market are likely to increase Friday after a massive 7-day reverse repo sale by the central bank.
Chinese central bank - the People's Bank of China (PBOC) sold 120 billion yuan of 7-day reverse repos in Thursday's open market operations, which, together with the Tuesday-sold ones, produced an over 6-month high weekly liquidity supply at 150 billion yuan for financial system this week.
Traders noted that the move showed the central bank's intention to keep liquidity environment stable after yuan's sharp devaluation last week, which might provide a support to bond prices.
On Thursday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, gained 0.0159 percent to close at 163.8654 points.
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