Reported about 1 year ago
China's central bank, the People's Bank of China (PBOC), has announced plans to borrow hundreds of billions of yuan worth of bonds and sell them based on market conditions to cool a strong bond rally. With the treasury bonds at its disposal reaching a significant amount, the central bank's actions are seen as an effort to influence credit flow and market yields. Analysts believe this move aims to stabilize interest rates and prevent excessive drops in bond prices, as China's sovereign bonds have been performing strongly this year with record-low yields amidst economic uncertainties.
Source: YAHOO