The People’s Bank of China offered 100 billion yuan via the one-year medium-term lending facility, keeping the rate unchanged at 3.15%. There were no loans coming due Monday. The central bank refrained from injecting liquidity with short-term reverse repurchase agreements for a 20th straight day.late Friday that it will trim the amount of cash some lenders must hold in reserve. The cut, which is also effective from Monday, will free up about 550 billion yuan of liquidity in the financial system.
“Some investors are disappointed that the PBOC didn’t cut the interest rate,” said Xing Zhaopeng, a market economist at Australia and New Zealand Banking Group in Shanghai. “It could be taken as a signal from the authorities that they will not lower borrowing costs anytime soon. Beijing will only cut rates when more people are back to work, which may be after mid-April.”
China’s 10-year government bond futures erased an earlier gain of as much as 0.32% to trade little changed after the PBOC move. The yield on sovereign notes due in a decade dropped 2 basis points to 2.67%, paring a decline of as much as 4 basis points.s around the world are taking steps to shore up confidence in financial markets, which are undergoing a sell-off in many ways unseen seen since the global financial crisis in 2008. In the U.S.