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Chinese central banker warns of government bond risks as yields slide - REUTERS

JANUARY 15, 2025

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.

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