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Chinese State Media Hint at Possible PBOC Bond Selling

·1 min

For weeks investors have been watching for signs that a central bank might start buying government bonds, a rarely used policy tool. It seems ready to step into the market, but as a seller, as it looks to tame a bond rally. A central bank will sell Treasury bonds when necessary, stoking fresh discussion about whether the bank should trade Treasury bonds on the secondary market as a way to manage liquidity.