PBOC Signals Possible Government Bond Sales to Cool Market Rally
- Move comes after benchmark 10-year yields fell to record low
- China’s central bank had hinted at bond-selling in May
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The People’s Bank of China said it will borrow government bonds from primary dealers, a sign it may be contemplating selling securities to cool down a market rally.
China’s central bank has decided to borrow bonds from some dealers in order to maintain the steady operation of the bond market, it said in a statement. The decision was made after “careful observation and evaluation” of the current market situation, it said.