The unexpected action is intended to tamp down a potential bubble in the bond market fueled by investors shunning riskier assets like stocks and real estate.

China's central bank suspended treasury bond purchases on Friday, briefly lifting yields and spurring speculation it is stepping up defence of the yuan currency which has been sliding since the election of Donald Trump as U.

China’s central bank has hit pause on government bond purchases, a move that comes as long-term yields hit fresh lows amid expectations of more monetary policy easing. The People’s Bank of China cited excess demand for government bonds as the reason for its decision,

The bank halted its government bond purchases Friday in an attempt to slow a one-way bonds trade that's put unwanted downward pressure on the yuan, analysts say.

China’s central bank has stepped up efforts to cool the bond market by temporarily suspending its open market purchases of government bonds, following recent warnings and heavy fines targeting bond-trading irregularities amid record low bond yields.