Beijing | Hong Kong | China’s plans to issue billions of dollars of government bonds before the end of the year could burst a “bubble” in the country’s treasury market, people close to the central bank have warned.
The warning follows frenzied buying that has driven up the prices of Chinese 10-year central government bonds, pushing yields below 2.2 per cent and leading the People’s Bank of China to caution that a sudden reversal could threaten financial stability.
