(Oct 27): China’s five-year government bond yield dropped after the central bank increased its cash injection into the banking system.

The yield on five-year sovereign notes briefly touched 1.34% to head for the lowest closing level on record, based on Chinabond data going back to 2002. It had also briefly declined below the record close on an intraday basis last week.

The People’s Bank of China earlier injected a net RMB1.01 trillion (RM618.77 billion) via reverse repurchases in open market operations, the highest daily net injection on record, Bloomberg data show.

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