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MNI BRIEF: PBOC Restarts CGB Trade After Nearly Two Decades

MNI (BEIJING) - The People’s Bank of China announced Thursday it had today bought special treasuries, restarting purchases of state bonds for the first time in 16 years.  

According to a statement on its website, the PBOC conducted an outright purchase operation through a quantity bidding method, buying a total of CNY400 billion special treasury bonds from primary dealers, broken down as CNY300 billion of 10-year maturity and CNY100 billion of 15-year paper.

MNI reported the Bank would restart treasury trades on the secondary market to support long-term Chinese government bond issuance, (see:MNI: PBOC Eyes Secondary CGB Trading To Support Issuance) and the purchase may indicate the PBOC will operate two-way trade in CGBs to help control liquidity and market volatility. (see:MNI: PBOC Eyes CGB Selling To Curb Bull Bond Market)

 

 

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