Bond prices on China's interbank bond market are likely to increase Friday after the central bank's net capital injection.
The People's Bank of China, China's central bank, conducted 80 billion yuan worth of 14-day reverse repos via Thursday's open market operations. Given that there were 90 billion yuan worth of reverse repos due this week, together with the 50 billion yuan of 7-day reverse repos offered on Tuesday, the central bank injected a net 40 billion yuan into the financial system.
Traders noted that the move showed the central bank's intention to boost market liquidity in a bid to avoid the habitual liquidity crunch caused by the seasonal factors.
On Thursday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, picked up 0.0209 percent to 165.0137 points.
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