China's central bank intervenes in bond market to stabilize yields

China's central bank, the People's Bank of China, is preparing for its first direct bond market intervention in decades to address a bubble in the sovereign bond market. It plans to borrow and sell long-dated bonds to control demand and stabilize yields. Analysts doubt the sustainability of this strategy due to structural factors in the economy. The central bank aims to manage the bond market as China plans to issue more long-dated bonds.