China’s central bank said it injected a net 10 billion yuan through open-market government bond purchases and sales in June, bringing net liquidity injections through that channel in the first half of 2026 to 300 billion yuan.
The People’s Bank of China said in a Xinhua-reported release that government bond trading has been conducted on a routine basis since the start of the year, with operation sizes adjusted flexibly according to base-money supply needs and bond-market conditions.
For June, the PBOC also reported a net 200 billion yuan injection through the medium-term lending facility, a net withdrawal of 137.2 billion yuan through other structural monetary policy tools, net injections of 582.6 billion yuan through 7-day reverse repos, and net injections of 300 billion yuan through reverse repos of other maturities.
The central bank has previously said government bond operations are part of its liquidity-management toolkit. In January 2025, it said it would temporarily suspend open-market purchases of government bonds because of persistent excess demand in that market and that purchases would resume at an appropriate time depending on supply and demand conditions.