PBOC's Official Media Warns of Bond Market Risks: Central Bank from Verbal Warnings to Actions, Market Should Not Underestimate Determination

The PBOC is determined to maintain a normal upward yield curve and correct bond market risks. From the perspective of stabilizing exchange rates and expectations, industry insiders explain that institutions scrambling for government bonds implies expectations of lower future interest rates, possibly entering a prolonged low-interest rate era like Japan, essentially shorting the RMB and the Chinese economy, increasing capital outflow pressure.