Institutions snapping up Chinese treasury bonds are shorting the economy, state media says

Financial institutions purchasing Chinese government bonds are effectively betting against the Chinese economy, as per a report from China’s central bank-backed Financial News. The report reflects concerns expressed by industry insiders and experts. The People’s Bank of China (PBOC) recently voiced worries and introduced plans to sell treasury bonds to address a bond market rally. The central bank aims to maintain a normal upward-sloping yield curve and manage bond-market risks. The PBOC stated it has considerable bonds at its disposal to borrow and sell depending on market conditions. Experts cited in the report highlighted the move as the central bank’s effort to stabilize exchange rates and economic expectations.