PBOC Sets Up Swap Facility for Large Non-Bank Redemptions; September Interbank Bond Repo Daily Turnover Falls 10.6% Year on Year
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A daily digest of bond-market news dated October 27, 2026, leads with the People's Bank of China establishing a swap facility for large non-bank redemptions in the bond market. The PBOC also reported that average daily interbank bond repo turnover in September was 6.5 trillion yuan, down 10.6% year on year. Morgan Asset Management forecast 7%-8% returns on US Treasuries over the next 12 months. Poly Developments plans to issue 20 billion yuan in 2026 second-tranche medium-term notes, while Agricultural Bank of China issued 20 billion yuan of 'Three Rural' financial bonds, the largest such issuance this year. Harvest's sci-tech bond ETF completed the first pledged agreement repo trade for a bond ETF. US investment-grade bond issuance is on track for an annual record, driven by surging AI spending. ING flagged lingering yield-spread risk between French and German government bonds, HSBC turned bullish on bonds citing excessive selling, and Colombia returned to global bond markets amid fiscal pressure.
Source report
- The People's Bank of China (PBOC) has established a non-bank large-amount redemption swap facility for the bond market.
- PBOC: Average daily bond repurchase transactions in the interbank market reached RMB 6.5 trillion in September, down 10.6% year-on-year.
- Morgan Asset Management expects US Treasury returns of 7%–8% over the next 12 months.
- Poly Developments plans to issue its second tranche of medium-term notes for 2026, totaling RMB 2 billion.
- Harvest Fund's Science and Technology Innovation Bond ETF completed its first bond ETF pledged agreement repurchase transaction.
- Agricultural Bank of China issued RMB 20 billion in "Three Rural" (agriculture, rural areas, and farmers) special financial bonds, the largest issuance of this type so far this year.
- US investment-grade bond issuance is on track to set an annual record, as surging AI spending drives companies to increase borrowing.
- ING: Yield spread risk between French and German government bonds remains.
- HSBC has turned bullish on bonds, believing the fixed-income market selloff has been "overdone."
- With fiscal pressure intensifying, Colombia has reopened global bond market financing.
Source
domesticNeutral / independent