PBoC drops yield on 3-year government bills

The People’s Bank of China (PBoC) dropped the yield rate on its three-year government bills for the first time in six weeks, Bloomberg reported. The US$23.6 million offer of securities was prices at 2.65%, three basis points lower than the 2.68% offered at the last auction on July 3. The move was widely seen as a sign that Beijing will use the room offered by the recent dip in inflation to loosen monetary policy in a bid to support the economy, which showed signs of a slight slowdown on Thursday.