Some Institutions Receive Regulatory Warnings to Strengthen Bond Investment Risk Management

Since this week, long-term bond yields have accelerated their decline. As of the close on October 14, the yield on the 10-year Treasury note stood at 1.64%, approaching historical lows. Cailianshe reporters learned from multiple insiders that, in response to the recent surge in trading activity for long-term government bonds, certain securities firms and banks received specific warnings from regulators to enhance their bond investment risk management. Industry insiders believe that the central bank has repeatedly emphasized strengthening macro-prudential management of financial markets and closely monitoring market conditions. It is not excluded that institutions with overly aggressive trading behaviors may face macro-prudential measures in the future. (Cailianshe)