China conducts this year’s 10th central bank bills swap

BEIJING, Oct. 28 (Xinhua) — The People’s Bank of China, the central bank, said it would conduct this year’s tenth central bank bills swap (CBS) operation on Wednesday to improve the liquidity of perpetual bonds issued by commercial banks.

The CBS, valued at 5 billion yuan (about 744 million U.S. dollars), is open to primary dealers for bidding at a fixed rate of 0.1 percent, the central bank said in a statement.

The swap will be due on Jan. 28, 2021, said the statement.

The CBS scheme allows dealers to swap the perpetual bonds they hold for central bank bills, which will boost market demand for perpetual bonds but have a neutral impact on liquidity in the banking system.

Perpetual bonds are fixed-income securities with no maturity date and are not redeemable but pay a steady stream of interest in perpetuity.

Related posts

China Mobile, China State Construction ink strategic 5G integration agreement


Hong Kong suspends import of poultry products from areas in Japan, France


China’s GDP expected to exceed 100 trln yuan in 2020: Xi