Bonds
PBOC Halts Bond Buying to Defend Yuan as Economic Gloom Worsens
- Move comes after benchmark yields fell to record low in Jan.
- PBOC began a bond trading plan last year to manage liquidity
The People's Bank of China (PBOC) building in Beijing.
Source: Bloomberg
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China’s central bank said it will suspend buying government bonds, its latest attempt to temper investor bets on weak economic growth that have undermined the currency and sapped confidence among businesses and consumers.
The People’s Bank of China will halt purchases of sovereign debt this month as the supply of the bonds has fallen short of demand, it said in a statement on Friday. The central bank will pick a time to resume buying depending on market conditions, it added.