China Steps Into Bond Market as Angst Grows About One-Way Bets
- Move tackles a slide in China’s bond yields to a record low
- It’s ‘a good time to buy any rise in yields,’ TS Lombard says
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China’s decision to step into its government-debt market shows that officials are willing to act to curb a relentless bond rally, but it raises new questions about efforts to stimulate the world’s second-largest economy.
The People’s Bank of China sold long-dated bonds and bought short-maturity securities in a move that resulted in a net purchase of 100 billion yuan ($14 billion) of debt in August, according to a statement on its website Friday.