China's Central Bank Takes Action to Preserve Market Liquidity and Yield Stability

China's Central Bank Initiative

China's central bank is actively engaging in borrowing treasury bonds from primary market traders to counter the trend of decreasing long-term bond yields.

Maintaining Market Liquidity

• Market Stability: The initiative is designed to enhance market liquidity and prevent erratic fluctuations in bond yields.
• Strategic Measure: By borrowing treasury bonds, the central bank aims to stabilize yields and safeguard market integrity.

Commitment to Stability: This action underscores the central bank's commitment to ensuring a stable environment within the bond market.