PBoC suspends government bond purchases
China's central bank moves after “persistent excess demand” causes yields to hit record lows
The People’s Bank of China (PBoC) has decided to temporarily suspend government bond purchases because of “persistent excess demand”.
In a statement today (January 10), the central bank said it would resume buying government bonds at an appropriate time, depending on the supply and demand conditions in the market.
The decision comes after yields on Chinese government bonds hit record lows in recent weeks, as the country’s flagging economy caused investors to turn to the safer assets.
Analysts
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