China’s central bank injected 601.8 billion yuan to stop a growing bond selloff

To counteract a bond selloff, the People’s Bank of China injected 601.8 billion yuan into the market, marking the largest daily liquidity boost since January.

Over 90% of mutual bond funds reported losses, triggering heavy redemptions. This has intensified pressure on the already struggling bond market and raised concerns among investors.

Unless the central bank continues to provide liquidity support, the bond market could enter a negative feedback loop, worsening the selloff and raising borrowing costs.