April 24, 2024 02:20 GMT
PBOC Eyes Adding Treasury Bond Trades To Policy Reserves
CHINA PRESS
MNI (Singapore)
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The People’s Bank of China could use secondary market treasury trading for liquidity management and a reserve of monetary-policy tools, a novel approach compared to the quantitative easing (QE) seen from other developed economy central banks, the PBOC-run newspaper Financial News reported citing an unnamed official. China's treasury bond market has become the third-largest in the world and its liquidity has improved, making it possible for the central bank to carry out bond trading on the secondary market, the official said. China's long-term treasury bond yields, which have fallen recently, will move "within a reasonable range" in line with expected economic growth, the official added.
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