China's bond market is disturbed by.....>

CHINA PRESS: China's bond market is disturbed by rumours suggesting that

regulators could include policy bank bonds in interbank investment management,

said Ming Ming, chief analyst at CITIC Securities in a report. Ming said such a

move would limit the size of interbank assets and lead to the weakening of

policy bank bonds while strengthening government bonds. He said policymakers

could be aiming to curb the disorderly expansion of the interbank assets of some

small and medium-sized banks, rather than targeting policy banks. Increased

interbank regulations and the marginal tightening of credits would be conducive

to drive down risk-free interest rates, Ming said.