According to the latest report carried by Bloomberg on Thursday, the clearing data prompted speculations that the People’s Bank of China (PBOC) may have resorted to government bond-buying from domestic banks last month. Key takeaways “Sovereign bonds held by “other” investors — a category that includes central banks and clearing houses — rose by 196.5 billion yuan to 1.78 trillion yuan ($256 billion) last month, according to data released by China Central Depository & Clearing Co. last week. Policymakers have frequently said in the past they do not intend to enact the kind of bond-market purchases seen in developed markets and have restricted stimulus measures throughout the coronavirus crisis to moderate trimming of market interest rates and a more generous liquidity policy. But they have flagged a willingness to support the government’s fiscal policy. The PBOC is forbidden by the nation’s central bank law from purchasing government debt in the primary market.” Market reaction The above report has little to no impact on the Chinese yuan, as USD/CNY trades flat at 6.9375 so far this Thursday. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next AUD/JPY probes intraday high above 76.50 on upbeat Aussie jobs report FX Street 2 years According to the latest report carried by Bloomberg on Thursday, the clearing data prompted speculations that the People’s Bank of China (PBOC) may have resorted to government bond-buying from domestic banks last month. Key takeaways “Sovereign bonds held by “other” investors -- a category that includes central banks and clearing houses -- rose by 196.5 billion yuan to 1.78 trillion yuan ($256 billion) last month, according to data released by China Central Depository & Clearing Co. last week. Policymakers have frequently said in the past they do not intend to enact the kind of bond-market purchases seen in developed markets… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
