China's Central Bank to Re-enter Treasury Bond Market

China's central bank announced its plan to sell low-risk bonds, including government bonds, while closely monitoring the bond market and potential risks. The decision follows a Reuters inquiry about the scarcity of low-risk assets, affecting the bank's move back to the treasury bond market after 17 years.

China's central bank said on Thursday it will sell low risk bonds including government bonds when necessary, while paying close attention to current bond market changes and potential risks.

The People's Bank of China (PBOC) made the statement after Reuters sought comment on a scarcity of low-risk assets in China's financial sector that is obstructing the bank's plans to return to the treasury bond market after a 17-year hiatus.