At the recent 2025 Financial Street Forum annual meeting, Pan Gongsheng, the governor of the People's Bank of China, revealed that the trading of treasury bond bonds in the open market would resume. The central bank's purchase and sale of treasury bond in the open market is an important measure to enhance the financial function of treasury bond, give play to the benchmark role of treasury bond yield curve pricing, and enhance the synergy between monetary policy and fiscal policy. It is also conducive to the reform and development of China's bond market and the improvement of the market making pricing ability of financial institutions. Recently, the People's Bank of China announced that the liquidity investment of various instruments of the Central Bank in October 2025 showed that the net investment of treasury bond bonds in the open market was 20 billion yuan. This means that the trading of treasury bond suspended since January this year has resumed in October. Buying and selling treasury bond is a routine operation in the monetary policy toolbox, which is mainly positioned in the basic currency supply and liquidity management. It can be bought or sold, and can be flexibly matched with other tools to improve the scientificity and accuracy of short-term, medium and long-term liquidity management. In practice, the Central Bank will flexibly carry out two-way trading of treasury bond according to the demand for basic money supply, taking into account the supply and demand of the bond market and the changes in the shape of the yield curve, so as to ensure the smooth transmission of monetary policy and the smooth operation of the financial market. Since the start of treasury bond trading in the open market in August last year, as of December last year, the central bank had purchased a total of 1 trillion yuan of treasury bond. However, at the beginning of this year, the pressure of imbalance between supply and demand in the bond market was great, and market risks were accumulated. The "pause button" was pressed for treasury bond trading. "Compared with the suspension of treasury bond trading at the beginning of the year, the yield of the current 10-year treasury bond has risen to around 1.8%, the term interest margin has widened, and the bond market as a whole is operating well. ”Wang Qing, the chief macro analyst of Oriental Jincheng, believes that the current resumption of treasury bond bond trading operations and increased support for the long-term liquidity of the banking system are also further releasing the signal of stable growth, which will help stabilize the macroeconomic operation in the fourth quarter of this year and the first quarter of next year. Liu Xiangdong, Chief Macro Analyst of Dagong International, stated that from the perspective of macro monetary policy, the central bank's move reflects a moderately loose monetary policy orientation, which avoids liquidity tension and does not release signals of excessive easing, helping to achieve the dual goals of stable growth and risk prevention. From the perspective of bond market operation, this move is conducive to improving the liquidity of the secondary market, supporting price discovery and duration management, suppressing excessive fluctuations in short-term interest rates, and improving the efficiency of bond direct financing and repurchase markets. It conveys the expectation of stable interest rate trends to the market, reduces risk premiums, and attracts long-term capital allocation, thereby reducing financing costs and supporting the real economy. Although it is only 20 billion yuan, the emphasis is on prudent and structural adjustment, which not only serves the stable operation of the real economy and bond market, but also leaves room for the central bank to make more targeted adjustments through other tools when necessary. ”Liu Xiangdong believes that this conveys a policy tone of "stability as the priority and flexible response" to the market. The Chief Economist of CITIC Securities clearly stated that the central bank's operation has released two major signals. On the one hand, the net buying operation mode reflects the central bank's operational goals of nurturing the liquidity market and stabilizing the bond market expectations; On the other hand, the relatively low net purchase scale of 20 billion yuan also reflects the prudent operation of the central bank to avoid excessive impact on bond market expectations. Mingming said that the maturity of six-month buyout reverse repo in November was 300 billion yuan, while the maturity of medium-term lending facilities (MLF) was 900 billion yuan. The subsequent central bank still has the possibility of increasing the net purchase scale of large country bonds to hedge the maturity pressure of other monetary instruments. In recent years, the central bank has timely adjusted short-term liquidity through reverse repurchase operations; Strengthen short-term liquidity investment through buyout reverse repurchase and MLF operations; Inject long-term liquidity into the market through tools such as reserve requirement ratio cuts, further optimizing the term structure of market liquidity. ”Dong Ximiao, the chief researcher of China Merchants Confederation, said that the fourth quarter was the time when the policy of stabilizing growth came into force, and the Central Bank had injected long-term liquidity into the banking system by resuming the trading of treasury bond. Dong Ximiao believes that it is necessary for the central bank to maintain sufficient market liquidity through various monetary policy tools at the end and beginning of the year, and then guide financial institutions to increase credit injection. (New Society)