S&P 500 Futures print mild gains as PBOC makes biggest weekly cash injection in two months

Market sentiment improves during early Friday as the People’s Bank of China made its biggest weekly liquidity injection into the banking system in nearly two months to counteract the year-end rush for cash, per Reuters.

“PBOC injected a total of 205 billion Yuan ($29.36 billion) via open market operations on Friday, including 2 billion Yuan through the seven-day tenor and 203 billion through the 14-day tenor,” according to an online statement reported by Reuters.

“The PBOC attributed the liquidity offerings to "maintaining steady year-end liquidity level,” stated the news.

Reuters also mentioned that with the 41 billion Yuan worth of reverse repos maturing on Friday, the PBOC injected a net 164 billion Yuan on the day. And it brought the weekly cash offerings to a net 704 billion Yuan, the biggest since late October.

It’s worth noting that the chatters surrounding Evergrande’s nearness to offshore debt restructuring plan also underpin the cautious optimism in the markets.

S&P 500 Futures restore optimism

The news helps S&P 500 Futures to print mild gains around 3,855 despite the negative closing of Wall Street. Even so, the US Treasury yields remain firmer amid hawkish Fed bets and pre-data anxiety.

Also read: US Dollar Index bulls take a breather as Fed’s preferred inflation, US Durable Goods Orders loom