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.

The move comes as long-term yields on Chinese bonds hit fresh lows amid expectations of more monetary policy easing.

The People's Bank of China (PBC) announced on Friday that it has decided to temporarily suspend treasury bond purchases in the open market, starting from this month. The central bank said the decision was made as demand exceeded supply on the government bond market recently,

China's central bank is expected to deploy its most aggressive monetary tactics in a decade this year as it tries to stimulate the economy and soften the blow of impending U.S. tariff hikes, but in doing so it risks quickly exhausting its firepower.

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 has hit pause on government-bond purchases, citing excess demand. The People's Bank of China has already moved to support the country's flagging currency, through sett

China's central bank said on Friday it has decided to suspend treasury bond purchases temporarily due to short supply of the bonds, triggering a jump in yields across tenors. The People's Bank of China (PBOC) said in a statement it would resume bond buying depending on supply and demand in the government bond market.