MNI BRIEF: PBOC Plans To Borrow Hundred Bln Yuan CGB - Press
Hundreds of billions of yuan worth of treasury bonds are available for the People’s Bank of China to borrow from financial institutions, according to Financial News, a paper run by the central bank on Friday.
The PBOC has signed agreements and will borrow the medium- to long-term bonds using an open-ended, credit-based method. “(The Bank) will continue to borrow and sell treasury bonds based on market conditions,” the report said.
MNI has reported the PBOC would step in and sell CGB in the secondary market to curb the surging bond markets. Investors expect a move by the PBOC's soon after the borrowing operations. (See:MNI: PBOC Eyes CGB Selling To Curb Bull Bond Market)
China's bond market fell following the news with 10-year CGB yield rising 1bps to 2.270% and the 30-year up 1.4bps to 2.479% in the morning session on Friday.