China’s Central Bank Halts Bond Purchases to Support Yuan
- The People’s Bank of China will stop purchasing government bonds this month.
- The yield on the 10-year Chinese government bond fell below 1.6% early this week.
- This marks a 100 basis points decline over the past year.
- The U.S. 10-year bond yield rose to 4.7%, widening the yield differential with China.
- The Chinese yuan slipped to 7.32 per USD, continuing a three-month losing streak.
China’s central bank has halted government bond purchases due to high demand and falling yields, leading to further depreciation of the yuan against the dollar, which now stands at 7.32 per USD.
