The People’s Bank of China (PBOC) announced it will suspend government bond purchases this month due to a supply-demand imbalance, as bond supply has fallen short of demand. This decision aims to curb investor speculation on weak economic growth, which has affected the currency and eroded business and consumer confidence. The PBOC initiated a bond trading plan last year to manage liquidity, but record-low benchmark yields in January intensified concerns. The central bank stated it will resume purchases based on market conditions. This move reflects ongoing efforts to stabilize financial markets and address economic challenges. Continue here.
