June bond purchases dropped sharply
According to Techub, citing CryptoBriefing, the People’s Bank of China recorded net government bond purchases of only RMB 10 billion in June 2026, marking the lowest level in nine months. Compared with earlier secondary-market buying intended to support economic conditions, the June figure points to a clear moderation in the scale of intervention. The data suggests that the central bank is no longer expanding bond purchases aggressively and is instead adjusting liquidity conditions with greater restraint.
Reverse repo operation hit a record low
The report also noted that on June 2, the PBOC conducted just RMB 200 million in reverse repo operations, the smallest single-day amount on record. Coming at a time when bond yields had fallen to new lows, the operation was interpreted as a sign that the central bank had shifted toward withdrawing excess liquidity rather than adding more. In practical terms, this indicates a more cautious stance in open-market operations as declining yields reduce the need for broader liquidity support.
Program history and what markets should watch next
The PBOC’s secondary-market government bond purchase program began in August 2024 as part of broader efforts to support the economy. However, the program was suspended in January 2025 after yields moved lower, showing that implementation has been sensitive to bond-market conditions from the start. For crypto markets, the report explicitly states that no analysts have yet drawn a direct connection between these operations and crypto money markets. As a result, the main near-term point of attention is whether July 2026 operations continue in the same direction. If both net bond purchases and open-market liquidity injections remain subdued, markets may read that as further evidence of a policy preference for tighter liquidity management rather than renewed easing.