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,

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.

The People's Bank of China said Friday that it will suspend purchases of sovereign debt this month as the supply of the bonds has fallen short of demand. Christy Tan, investment strategist at Franklin Templeton Institute,