Chinese institutions buying bonds, PBOC aims to stabilize market

Chinese financial institutions are buying Chinese treasury bonds, seen as a bet against the economy. The People's Bank of China aims to sell bonds to temper a bond rally. The central bank plans to stabilize the yield curve and address bond market risks. It has significant bonds to sell to stabilize economic expectations and exchange rates. Institutions buying bonds are essentially betting on lower interest rates, potentially impacting the yuan and economy.