PBOC Buys Special Bonds From Market After Ministry of Finance’s Private Auction

(Bloomberg) — China’s central bank bought special government bonds from the market on Thursday, in an anticipated move to minimize the chance of a sudden tightening of liquidity after the government rolled over the debt in a private placement.

The People’s Bank of China (PBOC) bought 400 billion yuan ($56.1 billion) of the bonds from primary dealers, it said in a statement on Thursday. The notes were sold by the Ministry of Finance to designated domestic lenders earlier in the session, as the same amount of them expired.