The **People's Bank of China** has suspended **treasury bond purchases**, citing a **shortage** in the market.
This decision led to a **significant rise** in yields, with the **30-year treasury yield** increasing by five basis points.
Analysts suggest the move aims to defend the **falling yuan** against the backdrop of widened yield gaps with the U.S.
The PBOC indicated it would resume purchases depending on **supply and demand**, after previously conducting bond buying to improve liquidity.
Warnings about potential **bubble risks** in the bond market were issued as long-dated yields hit **record lows**, reflecting bearish economic sentiment.
For more details, read the full article at Reuters.