Bond prices on China's interbank bond market are likely to correct Friday amid investors' wait-and-see sentiment. Traders noted that due to the dearth of fresh stimulus, investors' trading sentiment remained weak in the market.
The People's Bank of China, China's central bank, conducted 20 billion yuan worth of 7-day revere repos at annualized yield of 2.25 percent in Thursday's open market operation.
Given that 80 billion yuan worth of reverse repos are due this week, together with the 10 billion yuan of 7-day reverse repos offered on Tuesday, the central bank withdrew a net 50 billion yuan out of the financial system via this week's open market operations..
On Thursday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, edged up 0.031 percent to close at 168.2316 points.
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