PBOC injects 50b yuan through treasury bond operations in May

China's central bank made a net liquidity injection of 50 billion yuan ($7.33 billion) through open market treasury bond trading in May, according to data released by the People's Bank of China.

The figure shows that the central bank's open market treasury bond operations remained at a relatively low level of 40 billion to 50 billion yuan per month, a trend that has continued since February.

Wang Qing, chief macro analyst at Golden Credit Rating, said the May net injection was in line with the subdued levels seen in recent months, noting that market liquidity is currently relatively ample, leaving little need for the central bank to inject large amounts of long-term liquidity through open market treasury bond trading.

The move also reflects the central bank's policy intention to conduct open market operations in a flexible manner and guide market rates to move steadily around policy rates through coordination between liquidity volume and pricing, Wang added.

China will continue to implement a more proactive fiscal policy and adopt an appropriately accommodative monetary policy in 2026, according to this year's Government Work Report.

XINHUA — CHINA DAILY