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PBOC May Boost Liquidity as Bond Issuances Rise: Journal

CHINA PRESS
MNI (Singapore)

The PBOC is expected to boost liquidity by increasing reverse repo operations or rolling over the maturing medium-term lending facilities when the anticipated rise in local government bond sales drains liquidity, the China Securities Journal reported citing analysts. About CNY1 trillion local government bonds are expected to be issued in August, mainly concentrated in the second half of August, the newspaper said. This may pressure liquidity along with the maturing of CNY700 billion of MLFs as of Aug. 17 as well as the upcoming season of tax payments, the newspaper cited analysts as saying.

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