PBOC Signals Possible Government Bond Sales to Cool Market Rally

(Bloomberg) — The People’s Bank of China (PBOC) said it will borrow government bonds from primary dealers, a sign it may be contemplating selling securities to cool down a market rally.

China’s central bank has decided to borrow bonds from some dealers in order to maintain the steady operation of the bond market, it said in a statement. The decision was made after “careful observation and evaluation” of the current market situation, it said.