MNI BRIEF: PBOC To Continue Bond Trading In 2026: PBOC Zou

The People's Bank of China will conduct flexible government bonds trading in 2026, to keep liquidity ample and support issuance of government bonds, said Zou Lan, vice governor on Thursday in a briefing. 

The central bank will consider factors such as the need for base money supply, conditions in the bond market, and changes in the shape of the yield curve, he said, noting the operations can ensure the smooth issuance of government bonds at reasonable costs, help the government bond yield curve fulfill its role as a pricing benchmark, and enrich tools to prevent risks of sharp market fluctuations. (See MNI: PBOC To Increase CGB Purchases, Add Longer Tenors)

In 2025, the outstanding balance of government bonds and local government bonds involved in the central bank's outright repurchase operations approached CNY7 trillion, which played an important role in enhancing the market liquidity of government bonds, he introduced.