The People’s Bank of China will increasingly use treasury trades in the secondary market to make liquidity injections rather than through its medium-term lending facility, according to a Securities Times commentary article. The central bank’s net purchase of treasuries in August had effectively offset an MLF net-decrease of about CNY100 billion, the news outlet said, adding that such trades could adjust both liquidity and market rates simultaneously. As the PBOC normalises this operation, short-term treasury demand will increase and require coordination with the Ministry of Finance on bond issuance of various maturities, the newspaper said.