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China’s central bank halts bond purchases amid record low yields

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China’s central bank halts bond purchases amid record low yields

Credited from: SCMP

  • China’s central bank has suspended its open market purchases of government bonds to address record low yields.
  • The People’s Bank of China (PBOC) implemented this measure after observing demand outpacing supply in the bond market.
  • Analysts suggest the pause is to prevent further declines in yields and stabilize the yuan’s exchange rate.
  • The 10-year treasury bond yield reached a record low of 1.6% on January 3, prompting concerns from the PBOC.
  • This suspension follows a crackdown on bond-trading irregularities, including heavy penalties for financial institutions.

For the full article, visit SCMP.

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