FX.co ★ PBoC to Resume Treasury Bond Trading: Governor Pan Gongsheng

The People's Bank of China is set to recommence the trading of treasury bonds on the open market, Governor Pan Gongsheng announced on Monday, as reported by Xinhua Caijing. The central bank last engaged in bond transactions in December 2024, having since managed liquidity with precision to bolster the economy without repeating last year's significant bond rally. This rally had previously stirred concerns regarding asset bubbles and financial instability. "Earlier this year, the PBoC halted the trading of treasury bonds due to the intense pressure from an unbalanced supply and demand scenario in the bond market along with the buildup of market risks," Pan stated. He further noted, "Currently, the bond market is functioning smoothly." Pan reaffirmed the board's commitment to maintaining a supportive monetary policy stance and implementing moderately accommodative monetary measures.