Organizations grabbing hold of According to official media, Chinese treasury bonds are undervaluing the economy

4 months ago 422

It followed the paper's late-Friday announcement that China's central bank is committed to addressing bond-market issues and preserving a typical upward-sloping yield curve.

The People's Bank of China (PBOC) announced earlier this month that it is ready to borrow hundreds of billions of yuan worth of bonds and will sell them based on the state of the market.

Related : The 10 Most Reliable Ways to Fund a Startup

According to Financial News, which cited unidentified analysts, the action demonstrates the central bank's intention to stabilize the currency rate and economic expectations.

The study stated that financial firms' frenetic purchase of government bonds is equivalent to their expectation that interest rates will continue to decline.

"They are essentially putting more pressure on capital outflows by shorting the Chinese yuan and the Chinese economy."

Related : Value Statement: Why Your Business Needs It for Success