PBOC’s New Bond Trading Web Page Stokes Bets on Imminent Action
- Investors are watching if PBOC will start trading bonds
- Sovereign bonds have posted runaway gains amid weak economy
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China’s central bank created a new section for its bond-trading operations on its website, stoking speculation it may soon start buying or selling sovereign debt.
Under a web page about its open-market operations, the People’s Bank of China added a section for statements on “buying and selling of government bonds” late Wednesday. Various theories analyzing the central bank’s intentions have emerged since — some say it may sell a part of its holdings soon to tame the bond rally, while others argue it will buy debt from lenders that have participated in a private auction.