The People's Bank of China (PBOC) will resume open market treasury bond trading operations, as announced by Governor Pan Gongsheng at the 2025 Financial Street Forum Annual Meeting. This decision follows a suspension earlier this year due to supply and demand imbalances and market risk accumulation. The resumption aims to enhance the monetary policy toolbox and improve the coordination between monetary and fiscal policies. The PBOC had previously engaged in secondary market treasury bond trading to enrich financial functions and leverage the treasury bond yield curve as a pricing benchmark. This move is expected to contribute to the reform and development of China's bond market, enhancing market-making and pricing capabilities of financial institutions. The PBOC will conduct two-way trading operations flexibly, considering factors such as bond market supply and demand and yield curve changes, to ensure smooth monetary policy transmission and stable financial market operations.