China’s central bank injects 100B yuan via government bond trading in September

The composition matters more than the net figure: the PBOC is leaning on outright bond trading and the MLF while letting short-term reverse repos drain, a pattern consistent with longer-duration liquidity provision rather than a broad easing signal. For yuan and China-duration watchers, the split between outright bond purchases and reverse repo drains is the tell on how the central bank wants to manage the curve. Whether outright bond trading keeps scaling as the preferred tool is the open question.