China’s Money Markets Ease as PBOC Acts to Avoid Liquidity Shock

(Bloomberg) — China’s money markets eased from recent highs, after the central bank provided liquidity to stem a bond sell-off that threatened to spark panic among retail investors. 

The overnight interbank funding cost is poised for its biggest weekly drop in six weeks, while yields on the one-year government bond fell by the most since August. The People’s Bank of China (PBOC) added short-term liquidity for a second day Friday.