China’s c. bank conducts 8th swap operation in ’24

The People’s Bank of China (PBC) is set to conduct its eighth central bank bills swap (CBS) operation in 2024 on Wednesday to improve the liquidity of perpetual bonds.

The three-month, valued at five billion yuan, is open to primary dealers for bidding at a fixed rate of 0.1 per cent, the central bank said in a statement. The initial settlement date is August 28, 2024, and the maturity date is November 28, 2024.

The CBS programme allows dealers to swap the perpetual bonds they hold for central bank bills. Perpetual bonds are fixed-income securities with no maturity date and are not redeemable but pay a steady stream of interest in perpetuity.

Attribuion: PBC website

Subediting: M. S. Salama