The People's Bank of China announces the suspension of Treasury bond purchases.

The People's Bank of China announced in a press release published early on Friday morning that it has temporarily halted the purchase of government bonds, causing a sudden rise in Chinese bond yields.

In the press release, the People's Bank of China noted that this decision comes due to a shortage of bond supply; however, the decision raised doubts that the central bank may have taken this action to mitigate the sharp decline that the Chinese yuan has been experiencing recently.

The announcement from the People's Bank of China comes after repeated warnings about the risks of a bubble in China's booming bond market, but it may also be a strategy used by the bank to ensure that Chinese bonds remain at relatively high levels amid selling pressure that has hit the global bond market.