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China's Central Bank Halts Bond Purchases to Support Yuan

  • China's Central Bank halted government bond purchases to support the yuan, which has been losing value against the U.S. Dollar.
  • The yield on China's 10-year bond dipped below 1.6%, marking a significant decline over the past year.
  • Experts believe the PBOC's decision is aimed at stabilizing the yuan and addressing concerns about sliding bond yields.
  • The gap between Chinese and U.S. Bond yields has widened, contributing to pressure on the yuan exchange rate.
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