China's central bank, the People's Bank of China (PBOC), has injected 1 trillion yuan ($139 billion) into the financial system via outright reverse repo operations to boost liquidity, stabilize markets, and support economic growth. Here's what's behind this massive move ¹ ²:

- *Boosting Liquidity*: The PBOC aims to maintain ample liquidity in the banking system, ensuring banks have sufficient funds to lend and support economic activity.

- *Stabilizing Markets*: By injecting liquidity, the PBOC seeks to control money market fluctuations, anchor market expectations, and ease anxiety over China's interbank liquidity conditions.

- *Supporting Growth*: This move is expected to encourage banks to issue more loans, particularly to small and medium-sized enterprises, and facilitate smooth government debt sales.

*Key Details:*

- *Operation Details*: The PBOC conducted a fixed-quantity, interest-rate-bidding, and multiple-price-bidding operation with a three-month tenor.

- *Market Impact*: This liquidity injection is expected to drive renewed interest in risk assets, including cryptocurrencies, and potentially boost the stock market.

- *Expert Insights*: Analysts believe the PBOC's intention is to calm market nerves, particularly with banks facing significant debt maturities in June, and to support economic stability amid global uncertainties ² ³.