The People's Bank of China conducted 600 billion yuan of 1-year MLF operations on April 25, with a net injection of 500 billion yuan, the highest since December 2023. This move aimed to offset the peak of government bond issuance (1.3 trillion yuan of ultra-long-term special treasury bonds + 500 billion yuan of special treasury bonds) and the pressure from maturing reverse repo operations, signaling a monetary policy stance to stabilize growth.
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