PBOC Suspends Buying Bonds

A rundown of the news making headlines in and around China:

PBOC pauses bond purchases: As yields continue to slump and prices rise, China’s central bank has suspended open market purchases of government bonds. The People’s Bank of China (PBOC) said Friday it would resume purchases in the future based on supply and demand conditions. The PBOC restarted open market purchases in August last year, buying a net total of 1 trillion yuan of government bonds through year-end. Yields have steadily fallen, implying demand outstrips supply amid the country’s increasingly accommodative monetary policy. The yield on 10-year government bonds fell from above 2.5% at the start of 2024 to just under 1.7% on Dec. 31.