BEIJING, July 2 (Xinhua) -- The People's Bank of China (PBOC), the Chinese central bank, decided to carry out T-bond borrowing operations with part of the open market business primary dealers in near future, reported Xinhua-run China Securities Journal on Tuesday.
PBOC made the decision to safeguard stable and healthy running of bond market after prudent observation and assessment of the current market situations.
PBOC's planned T-bond borrowing operations on the open market were expected to add more stability to bond market and fend off irrational market volatility and potential risks, said Zhou Maohua, researcher with financial market department of China Everbright Bank.
The move pointed possibly to selling of T-bonds by PBOC on the open market in the near term, held Ming Ming, chief economist with CITIC Securities, highlighting that after the 10-year T-bond yield fell to historical lows recently, selling T-bonds would be helpful to stabilize long-term bond yield.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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