China Ramps Up Liquidity Injection Amid Bond Market Turmoil

(Bloomberg) — China’s central bank pumped in more cash than forecast into the banking system in December, in a move that’s expected to bolster bonds roiled by the nation’s abrupt Covid-19 policy shift.

The People’s Bank of China (PBOC) injected 650 billion yuan ($94 billion) via its one-year medium-term lending facility on Thursday, more than the 500 billion yuan due this month. Five out of the eight economists surveyed by Bloomberg prior to the operation expected a rollover of just the maturing amount. It’s the first net injection of cash via MLF since March.