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China Government Yields Higher As PBoC Announces Additional OMO Window

ASIA RATES

China government bonds are dealing 2-4bps cheaper after the PBOC introduced an additional daily open-market operation window.

  • The PBoC will carry out temporary bond repurchase or reverse repurchase operations depending on the market situation during working days between 16:00 and 16:20.
  • Bloomberg reports that Citi strategist Philip Yin writes in a note “The implication is likely more about the long term, i.e. increasing PBoC’s ability to ensure short-term interbank rates stay within its desired range, removing tail risks and increases funding market stability.”

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