China's central bank on Wednesday pumped a net 560 billion yuan ($83 billion) into its banking system — a record amount of money injected in one day — in a sign that the economy may be facing enormous stress.
The yield on the 10-year Chinese government bond fell below 3.1 percent on Wednesday afternoon, its lowest in more than two years, according to financial database Wind. Yields fall when bond prices rise, and a decline in yields typically signals expectations of a slowdown in economic growth.
"At present, it is the peak of the tax period, and the total liquidity of the banking system is declining rather quickly," the People's Bank of China said in a statement on its website. The central bank did not immediately respond to CNBC's faxed request for comment on Wednesday's record cash injection.