China's central bank borrows treasury bond to stabilize securities market

The People's Bank of China announced this week plans to borrow a treasury bond in the open market. Market insiders have said this move is similar to financing from the stock market. The treasury bond future price will be adjusted accordingly and the long-term yield will bounce back. Highlights by Talking Business: A seemingly short sell is in fact a move of the central bank to defuse risks of financial institutions flooding in the bond market and to safeguard the general public’s wallets.