PBOC Signals Possible Government Bond Sales to Cool Market Rally.

The People's Bank of China (PBOC) has announced that it will borrow government bonds from primary dealers, indicating a potential plan to sell securities in order to cool down a market rally. This decision comes after careful observation and evaluation of the current market situation. China's benchmark sovereign yields had dropped to a record low earlier, prompting the central bank to consider bond-selling. The PBOC's move to borrow bonds may be an attempt to stabilize long-term bond rates and prevent interest rate risk. [Extracted from the article]