Reported about 1 year ago
China's central bank, the People's Bank of China (PBOC), has disclosed plans to tap major banks to borrow and sell government bonds worth hundreds of billions of yuan in an effort to cool down a record-breaking bond rally. The move aims to address the surge in China's sovereign bonds fueled by economic concerns and increased demand for financial investments. The PBOC's unprecedented step of borrowing bonds from primary dealers signals its intention to intervene in the market to prevent potential financial instability caused by excessively low yields.
Source: YAHOO