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China’s central bank halts treasury bond buying citing short supply By Reuters
SHANGHAI (Reuters) – China’s central bank said on Friday it has decided to suspend treasury bond purchases temporarily due to short supply of the bonds, triggering a jump in yields across tenors.
The People’s Bank of China (PBOC) said in a statement it would resume bond buying depending on supply and demand in the government bond market.
The decision came after repeated warnings by the PBOC of bubble risks in China’s red-hot bond market, where long-dated yields have been repeatedly hitting record lows.
Yields, which move inversely to bond prices, jumped following the central bank’s announcement.
China’s 30-year treasury yield climbed five basis points in early trade while the 10-year yield rose four basis points.
Article by:Source- Reuters
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