China’s yield curve reached its steepest level in two years as a combination of flush liquidity and speculation that the central bank will keep monetary policy accommodative pushed down rates on shorter-maturity debt. The nation’s 1Y to 10Y yield spread widened to 93bps this week, up from as little as 45bps in December 2021. The central bank responded this week by raising the size of its short-term cash injection to 12bln yuan on Monday from 3bln yuan.