AsianFin—As China's treasury bond market continues to grow in both activity and size, the central bank could now utilize treasury bond trading in the secondary market to implement monetary policy, according to an official of the People’s Bank of China (PBoC).
The PBoC’s trading of treasury bonds in the secondary market can be a liquidity management method and a monetary policy reserve tool, Beijing-based Financial News reported yesterday, citing the official at the PBoC. China’s treasury bond market has become the third-largest worldwide, making the above operations possible, the official added.