China’s Bond Data Hint PBOC Is Buying Government Debt
- Clearing data suggest that central bank bought sovereign bonds
- PBOC hasn’t spelled out its intentions on government debt
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The People’s Bank of China may have bought government bonds from domestic banks in July, a rare move that has analysts puzzling over the monetary authority’s policy intentions amid a record amount of government debt issuance.
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.