SHANGHAI/BEIJING, June 14 (Reuters) – China’s central bank faces a looming test of its resolve to curb the financial stability risks it sees in a rallying bond market as it runs counter to its view of the economy by depicting a long-term outlook of soft growth and low inflation.
The People’s Bank of China, which has pledged to add treasury bond trading to its monetary policy toolkit, has issued repeated warnings against plummeting yields in long-dated government bonds, but has failed to reverse the trend.
Source: REUTER
