China PBC offers bill swap to boost liquidity

The People’s Bank of China (PBC) conducted a bill swap operation on Tuesday to enhance liquidity for perpetual bonds, Xinhua reported.

The 5 billion yuan (about $704.79 million) three-month swap is open to primary dealers for bidding at a fixed rate of 0.1 percent.

This scheme allows dealers to exchange their perpetual bonds for central bank bills, providing a steady stream of interest without a maturity date.