Abstract : The People's Bank of China, the central bank, said it will conduct this year's third central bank bills swap (CBS) operation on Friday to improve the liquidity of perpetual bonds issued by commercial banks.
BEIJING, March 26 (Xinhua) — The People’s Bank of China, the central bank, said it will conduct this year’s third central bank bills swap (CBS) operation on Friday to improve the liquidity of perpetual bonds issued by commercial banks.
The CBS, valued at 5 billion yuan (about 764.8 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 June 26, 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. Enditem
About Xinhua Silk Road
Xinhua Silk Road (en.imsilkroad.com) is the Belt and Road Initiative (BRI) portal. China’s silk road economic belt and the 21st century maritime silk road website, include BRI Policy, BRI Trade, BRI Investment, Belt and Road weekly, Know Belt and Road, and the integrated information services for the Belt and Road Initiative (BRI).
Source: China conducts third central bank bills swap in 2021