<\/p>\n
The People\u2019s Bank of China (PBOC) announced CGB borrowing from primary dealers earlier this week.\u00a0Reportedly, the central bank identified two potential operators yesterday. Such policy change echoes the PBOC Governor’s earlier speech on deepening monetary policy tools through CGB transactions, DBS Economist Samuel Tse notes.<\/p>\n
\u201cThe market interprets the long-end bond borrowing as a prelude to bond sales to cool the CGB rally. From a FX perspective, higher CGB yields and a narrower spread against UST counterparts\u00a0could help alleviate pressure on CNY exchange rates. Note that the PBOC still aims to stabilize exchange rates to forestall capital outflow.\u201d<\/p>\n
\u201cOur core strategy of steepening is still at play.\u00a0Potential long tenor bond selling matches\u00a0our view that\u00a010Y yields will likely stabilize in the near term. The 10Y CGB yield once rebounded to 2.27% this week after hitting the historical low of 2.18% following the announcement.\u201d<\/p>\n
\u201cHowever,\u00a0short-end CGB yields could head south\u00a0further as monetary easing is still on the cards.\u00a0Another round of RRR cuts is likely in 3Q\u00a0amid an uneven recovery and slowing credit growth.\u201d<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
The People\u2019s Bank of China (PBOC) announced CGB borrowing from primary dealers earlier this week.\u00a0Reportedly, the central bank identified two potential operators yesterday. Such policy change echoes the PBOC Governor’s earlier speech on deepening monetary policy tools through CGB transactions, DBS Economist Samuel Tse notes. PBOC still aims to stabilize exchange rates \u201cThe market interprets […]<\/p>\n","protected":false},"author":2,"featured_media":22333,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[299,201,248,251,297,246,257,255,250,252,450,247,253,249,449,256,254],"class_list":["post-338197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-banks","tag-blockchain","tag-bsc","tag-chainlink","tag-china","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-pboc","tag-polygon","tag-quickswap","tag-safe-moon","tag-usdcny","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/338197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=338197"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/338197\/revisions"}],"predecessor-version":[{"id":338198,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/338197\/revisions\/338198"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/22333"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=338197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=338197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=338197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}