China's central bank has injected more cash into the financial system, through its open market operations. It's seeking to ease a squeeze in money markets, partly brought on by big fundraising by commercial banks.

The central bank issued 115 billion yuan in bills on Thursday, most of which are for 3-years. 144 billion yuan in bills will mature this week. This week's net injection is significantly down on last week's 145 billion yuan, but still indicated that the country is maintaining a loose monetary policy. At the same time, the yields on 3-year and 3-month bills diverged again at auction on Thursday. It reflects banks' persistent demand for debt of longer tenors, amid expectations that the benchmark interest rate won't be raised anytime soon.

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