China investors snap up government bonds, prompting central bank warning

SHANGHAI -- China's real estate slump is driving money into government bonds for lack of a better investment destination, pushing yields to record lows and spurring the People's Bank of China to hint that it could step in.

Reuters reported on May 30 that the central bank said it will sell "low-risk bonds including government bonds when necessary." That evening, the PBOC-affiliated Financial News cited an expert who mentioned the possibility of the bank selling into the market.