MNI BRIEF: PBOC To Resume Treasury Bond Trading - Pan

The People’s Bank of China will resume treasury bond trading in the interbank market and continue to implement a moderately loose policy to create a favorable environment for economic recovery and stable financial markets, Governor Pan Gongsheng said on Monday at the opening of the 2025 Financial Street Forum. 

He said the current stable functioning of bond markets allow the central bank to resume bond trading, noting the move will enrich the PBOC's policy toolbox, leverage the benchmark role of the treasury bond yield curve in pricing, and improve coordination between monetary and fiscal policies. (See MNI: PBOC Seen Resuming Bond Purchases As Gov't Issuance Rises)

The PBOC will utilise tools to provide short-, medium-, and long-term liquidity, maintaining loose social financing conditions. At the same time, it will continue to refine the framework and strengthen the execution and transmission of its policy, he noted