China's PBOC Readies Multibillion-Yuan Pool of Bonds to Sell by Tapping Major Banks

  • PBOC signs agreements with major institutions to borrow bonds
  • Central bank says bond sales depend on market conditions
WATCH: The PBOC says it now has “hundreds of billions” of yuan government bonds at its disposal through agreements with lenders. Jill Disis reports.Source: Bloomberg
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China’s central bank took the next step toward selling government bonds to cool a record-breaking rally, saying it now has “hundreds of billions” of yuan of the securities at its disposal through agreements with lenders.

After months of investor speculation about its intentions, the People’s Bank of China disclosed the clearest outline yet of its unprecedented plans in a statement to Bloomberg News on Friday.