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China's central bank suspends bond purchases to stabilize yuan amid market dynamics

share-iconFriday, January 10 comment-icon1 week ago 6 views
News sources:
reutersREUTERS
China's central bank suspends bond purchases to stabilize yuan amid market dynamics

Credited from: REUTERS

  • 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.


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