China Government Bonds Owned by PBOC Are Being Sold, Traders Say

  • Move came after 10-year yields slid to record low this week
  • China has been pushing back against bond rally to limit risks
The People's Bank of China building in Beijing.

Source: Bloomberg

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Some Chinese government bonds that the nation’s central bank bought last week are now being sold in the secondary market, traders said, a possible sign that authorities are once again intervening to curb the debt rally.

The 10-year special sovereign notes, which the People’s Bank of China purchased from primary dealers last week, were offered by financial institutions in batches including 50 million yuan ($7 million) and 100 million yuan, according to traders. At least one deal went though Thursday afternoon at the yield of 2.125%, said the traders, who asked not to be named as the information is private.