China Bond Slump Fuels Speculation PBOC Will Resume Debt Buying

The Chinese bond selloff that drove benchmark yields to the highest level in nine months last week is spurring speculation the central bank is moving closer to restarting debt purchases.

Bonds snapped their declines late last week, with traders saying the recovery was helped by optimism the People’s Bank of China was about to step back into the market after suspending purchases in January. Expectations of central bank support have been building as a surge in Chinese stocks has weighed on the debt market.