China’s central bank has urged lenders to limit interest rates on an interbank lending product due to rising short-term yields on bank debt and funding market difficulties.

Large commercial lenders are warned not to offer NCDs at excessive rates.

NCD issuance rates and secondary market rates have grown since August to near six-month highs.

The central bank has injected 1.45 trillion yuan ($200.14 billion) in one-year medium-term lending facility (MLF) loans to some financial institutions, outperforming market estimates and netting 600 billion yuan into the banking sector.

The PBOC has been controlling cash balances to contain yield discrepancies with major economies.