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A man walks past the People's Bank of China (PBOC) building on July 20, 2023 in Beijing, China. (Photo by Jiang Qiming/China News Service/VCG via Getty Images
China News Service | China News Service | Getty Images
China bond yields fell to a record low after the People's Bank of China on Tuesday announced that it would cut the reserve requirement ratio for banks.
Yield on China's 10-year government bonds fell 3.75 basis points to 2.1%, data from LSEG showed, marking a record low.
During a press conference, PBOC Governor Pan Gongsheng announced that China will be reducing the reserve requirement ratio (RRR), which is the amount of cash banks must hold.
China will cut the amount of cash banks need to have on hand, PBOC's Gov. Pan Gongsheng said during a press conference on Tuesday.
China's onshore yuan weakened to 7.06 against the dollar, according to data from LSEG.
This relatively uncommon high-level press conference was arranged following last week's interest rate cut by the U.S. Federal Reserve, which initiated an easing cycle that may allow China's central bank to lower its rates further to stimulate growth amid deflationary pressures.
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