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PBOC allows massive cash drainage, prompting expectation of targeted tool injection

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China’s central bank allowed massive cash injections to mature on Tuesday without conducting open market operation to add liquidity, offering little relief to bond traders as the sell-off in the bond market continues.

The People’s Bank of China (PBOC) skipped open-market operations again Tuesday and 250 billion yuan liquidity was drained from the banking system as previously conducted reverse repurchase agreements come due.

“Spending at the end of the month will . . .

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