Market News
Chinese central banker warns of government bond risks as yields slide - REUTERS
Summary
- Senior central bank official warns of bond market bubble risk
- PBOC has suspended treasury bond purchases to stabilize yuan
- Chinese bond yields keep sliding
- Deputy governor emphasizes yuan stability measures
BEIJING/SHANGHAI, Jan 14 (Reuters) - Investments in governments bonds are not risk-free, a Chinese central bank official said on Tuesday, warning of a potential market bubble and resulting turbulence if bond yields departed from economic fundamentals.
Fast falling Chinese bond yields have been complicating Beijing's efforts to stabilise a weakening yuan and the People's Bank of China suspended treasury bond purchases in January, a move seen by investors as an attempt to stop yields from testing new record lows.