People's Bank of China injecting some liquidity

  • 459bn yuan
  • 6 month maturity, 66.5bn yuan, at 3.05%
  • and 1 year maturity, 392.5bn yuan, at 3.2%

The rates are unchanged from the previous MLF injection (April 17)

The People's Bank of China's Medium-term Lending Facility (MLF) is made up of three, six and 12 months loans to banks.

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This comes after the PBOC did not use OMOs today.

The PBOC is using 'targeted' liquidity injections like this more often, rather than the broad-brush actions like a RRR cut, as they tighten liquidity a little to try to recue leverage in the economy.

The tightening is tempered with these targeted injections of liquidity where the Bank assesses its needed.