Bond prices on China's interbank bond market are likely to increase Wednesday amid relatively stable liquidity.
Traders noted that the liquidity condition in the financial system remained relatively stable after the central bank adopted multiple policy instruments such as reverse repos and medium-term lending facility (MLF) in a bid to smooth market liquidity.
The People's Bank of China, China's central bank, conducted 130 billion yuan worth of 7-day reverse repos in Tuesday's open market operations.
Besides, the central bank said Monday it injected 100 billion yuan (15.4 billion U.S. dollars) into the market in December through medium-term lending facility (MLF).
On Tuesday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, slid 0.0775 percent to close at 169.6036 points.
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