PBOC Tests Demand for Two-Month Reverse Repos for First Time
- Central bank may be trying to calm liquidity concerns: analyst
- Moves comes after 10-year yield rises to highest since 2014
A man rides a bicycle past the People's Bank Of China headquarters.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s central bank is said to have gauged demand for 63-day reverse repurchase agreements for the first time ever.
The People’s Bank of China tested demand for the repos -- open-market operation tools that add cash to the financial system -- on Thursday, according to a trader at a primary dealer. The move came amid a tumble in sovereign debt, with the 10-year yield rising to the highest since 2014.