The Chinese central steps in to soothe the bond market with anxiety of an accelerated vortex

The Chinese Central Bank on Friday strengthened the liquidity of the pump, in an effort to contain a wave of sale in the bond market warning that it continues to decline, which destabilizes the stability of financial markets. The Chinese People’s Bank pumped 601.8 billion Yuan ($ 84 billion) of the short -term liquidity by reverse purchase agreements (purchase of bonds and promised to sell it later), which recorded the biggest daily pump since last January. The yields of the mortgage decrease after a long wave of rise, the returns of Chinese government bonds fell 30 years to seven consecutive days of rise, while future contracts for bond contracts ended the longest declines in more than two years. The recent fall in long -term bond prices has led to the warning of the Chinese authorities, pending the expansion of losses, in light of the decline in demand for debt instruments due to commercial ceasefire with the United States, and Beijing to treat contraction. Increasing indicators on the sale of investors have widely followed index that the pressure pressure by investors in fixed revenue instruments has risen to the highest levels on Thursday, reflecting the severity of the situation to almost double the possessions of funds from government bonds over the past two years. Analysts at Huatai Securities, including Chang Gikiang, wrote in a research note “Based on previous experiences, the bond market may occur increasingly as soon as the money withdrawal of investment funds will begin, where the vacuumers will have to sell more effects to provide liquidity for the benefit of customers. a slowdown in the profits of the stock market.