SHANGHAI, Dec 15 (Reuters) - The yuan eased to a near two-week low against the dollar on Tuesday, after the central bank made its biggest ever injection of medium-term funds, helping hose down imminent expectations for a tightening in monetary policy. The People"s Bank of China (PBOC) issued 950 billion yuan ($144.96 billion) in loans through a one-year medium-term lending facility (MLF) to financial institutions to keep bank liquidity ample, after recent corporate bond defaults shattered investor confidence and scuppered new issuance. "The volume of the MLF injections went beyond market forecasts," said a trader at a Chinese bank, adding the sudden higher cash conditions pressured the yuan, although the impact was expected to be short-lived. "It clearly shows that the authorities want to stabilise financial markets towards the year-end," he said. The onshore spot yuan opened at 6.5480 per dollar and eased to a low of 6.5551, the weakest level since Dec. 3. By midday, it was changing hands at 6.5535, 45 pips weaker than the previous late session close. Dollar/yuan swap points in forwards market fell after the huge cash injection, with the one-year tenor easing to the lowest in more than four months. The fresh cash injection also eased some worries about any imminent changes to monetary policy, in contrast to senior central bank officials repeatedly raising the prospect of an exit from current loose policies. "The PBOC is unlikely to tighten its monetary policy in the near-term, dampening expectation for further PBOC-Fed monetary divergence," said Ken Cheung, chief Asian FX strategist at Mizuho Bank in Hong Kong. Separately, markets mostly looked past solid economic data as traders have broadly reached consensus that a recovery in the world"s second-largest economy from coronavirus disruption remains on track. China"s industrial output grew in line with expectations in November, expanding for the eighth straight month as the economic recovery gathered pace and global demand picked up. Prior to the market open, the PBOC set the midpoint rate at 6.5434 per dollar, 73 pips or 0.11% weaker than the previous fix of 6.5361. The global dollar index fell to 90.686 at midday, when the offshore yuan was trading at 6.5425 per dollar. The yuan market at 0400 GMT: ONSHORE SPOT: Item Current Previous Change PBOC midpoint 6.5434 6.5361 -0.11% Spot yuan 6.5535 6.549 -0.07% Divergence from 0.15% midpoint* Spot change YTD 6.25% Spot change since 2005 26.29% revaluation Key indexes: Item Current Previous Change Thomson 95.08 95.29 -0.2 Reuters/HKEX CNH index Dollar index 90.686 90.696 0.0 *Divergence of the dollar/yuan exchange rate. Negative number indicates that spot yuan is trading stronger than the midpoint. The People"s Bank of China (PBOC) allows the exchange rate to rise or fall 2% from official midpoint rate it sets each morning. OFFSHORE CNH MARKET Instrument Current Difference from onshore Offshore spot yuan 6.5425 0.17% * Offshore 6.6863 -2.14% non-deliverable forwards ** *Premium for offshore spot over onshore **Figure reflects difference from PBOC"s official midpoint, since non-deliverable forwards are settled against the midpoint. . ($1 = 6.5536 Chinese yuan) (Reporting by Winni Zhou and Andrew Galbraith; Editing by Sam Holmes)