The central bank has announced that it will borrow government bonds, putting new monetary policy tools into practice

On July 2, the People's Bank of China released an open market business announcement on July 1, which once again sent a strong signal that the bond market should rationally "cool down", and was also regarded by the market as a "prelude" for the central bank to buy and sell government bonds. Unlike the previous judgment of the market, the central bank will start the operation of "buying" government bonds first. At present, analysts generally believe that this "borrowing" of government bonds means that the central bank may first "sell" the operation. "The central bank has repeatedly mentioned that the long-end yield point is too low and the risk of institutional position concentration, but the remaining maturity of the central bank's holdings of government bonds is mostly 3 years and below. We carry out borrowing operations of government bonds or pave the way for cash selling," said Zhou Guannan, chief analyst of fixed income at Huachuang Securities.