Bond prices on China's interbank bond market are likely to increase Thursday after the central bank took multiple measures to boost liquidity. The People's Bank of China, China's central bank, pumped via its 6-day short-term liquidity operations (SLO) 140 billion yuan of liquidity into financial system on Wednesday.
Traders noted that the move came just a day after the central bank cut both the benchmark interest rates and requirement reserve ratio (RRR), sending a signal that the central bank will strive to maintain stable liquidity environment, which might to some extent drive up bond prices.
On Wednesday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, crept up 0.0093 percent to 164.1712 points.
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