China’s Central Bank to Add Temporary Repos Depending on Market Conditions

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Open Market Operations,Interest Rates,PBOC

(Bloomberg) -- China’s central bank will conduct temporary bond repurchase or reverse repurchase operations in the afternoon, in addition to its traditional ...

-- China’s central bank will conduct temporary bond repurchase or reverse repurchase operations in the afternoon, in addition to its traditional morning operations, tightening its control over short-term interest rates.Le Pen Party Seeks Major French Election Win: What to Watch

The central bank said Monday that the duration of the extra operations would be overnight with fixed rates set at seven-day reverse repo rate minus 20 basis points and plus 50 basis points. The PBOC recently took a fresh step toward selling government bonds, saying on Friday it now has hundreds of billions of yuan worth of securities at its disposal to borrow, and would sell them depending on market conditions.China’s sovereign bonds have surged this year on the back of the country’s gloomy economic outlook and expectations for interest rate cuts. The lack of attractive alternatives and a switch out of savings to financial investments has fanned demand.

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China’s Central Bank to Add Temporary Repos Depending on Market ConditionsThe People’s Bank of China will carry out temporary bond repurchase or reverse repurchase operations depending on the market situation during working days between 4:00 p.m. and 4:20 p.m.
Source: BNNBloomberg - 🏆 83. / 50 Read more »