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Why China's central bank has stopped bond purchases

10 January 2025
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Why China's central bank has stopped bond purchases
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The Chinese central bank has halted government bond purchases to address downward pressure on the yuan caused by plummeting bond yields, signaling concerns about financial risks. This move comes amid slower economic growth and a wider gap between Chinese and U.S. bond yields, impacting capital outflows and exchange rates. By combining various measures, including bond suspensions and issuing bills, the PBOC aims to stabilize the yuan and manage bond yields effectively.

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Tags: Asia EconomyBankBondbondsbusiness newsCentralCentral bankingChinaChina039sEconomic eventsGovernment debtpurchasesStoppedUnited States
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