China bonds advance

China’s bonds advanced along with the yuan and stocks after the central bank added 500 billion yuan ($81.4 billion) to the financial system. The People’s Bank of China yesterday started providing the nation’s five biggest lenders with 100 billion yuan each through standing lending facilities with three-month tenors, according to a government official familiar with the matter. SLFs were used in January to meet increased demand for funds ahead of the Lunar New Year holiday, and before that from June 2013 to ease a record cash crunch. The finance ministry sold 10-year sovereign bonds today at the lowest yield since June. The yield on five-year government notes fell the most in three months, the yuan gained for the first time in five days and the Hang Seng China Enterprise Index of shares recorded the biggest jump in two weeks. One-year interest-rate swaps, the fixed payment to receive the floating seven-day repurchase rate, dropped as much as seven basis points to a three-month low of 3.46 per cent in Shanghai, data compiled by Bloomberg show, according to bloomberg.com