I posted on this earlier:
Bloomberg (gated) had the report.
The PBOC is preparing to step into the Chinese government bond market in a larger way, seeking to stem the bond rally by selling medium- and long-term bonds it plans to borrow from the market:
- PBOC has signed agreements with several major financial
institutions regarding bond borrowing - will borrow the bonds on an open-ended
unsecured basis - will then sell them depending on market conditions
This article was written by Eamonn Sheridan at www.forexlive.com. Source