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Following the injection of funds via Reverse Repos earlier on Tuesday, the People’s Bank of China (PBOC) is out with a statement, emphasizing on the need for more liquidity injections, in the face of China’s coronavirus outbreak.

Key Quotes:

Liquidity injection via open market operations shows determination to stabilise market expectations and restore market confidence.

Larger than expected liquidity injection pushes money market and bond yields down.

Liquidity injections will lower financing cost and ease financial pressure on small, micro businesses.