China Injects Enough Cash in System to Help Snap Bond Slump

(Bloomberg) — China sought to maintain ample cash levels in its financial system with liquidity tools of different maturities, helping halt the worst government bond sell-off in six years.

The liquidity infusion this month, which was done with a combination of short-, medium- and long-term tools, exceeded the 1 trillion yuan ($142 billion) maturity, according to the People’s Bank of China. That coupled with the release of worse-than-expected economic data helped cap the spike in the benchmark bond yield.