On September 24th, Gelunhui | People's Bank of China Governor Pan Gongsheng stated that the recent decline in government bond yields is influenced by the downward guidance of market interest rates due to the downward movement of policy interest rates, as well as the factors of slow government bond issuance supply in the previous period, and the factors of weak risk awareness, exacerbation, and herding effect among small and medium-sized financial institutions.

The level of government bond yields is the result of market formation. The People's Bank of China respects the role of the market, creating a good monetary environment for implementing proactive fiscal policies. However, it is also important to note that interest rate risk is an important aspect of financial institutions' risk management. The risk event of the bankruptcy of Silicon Valley Bank in the US reminds us that central banks need to observe and assess market risks from the perspective of macroprudential management, and take appropriate measures to weaken and prevent the accumulation of risks, which is the central bank's responsibility. Pan Gongsheng stated that the government bond yield curve, as an important pricing signal, has issues of insufficient pricing at the far end and inadequate stability. The central bank issues risk warnings on long-term government bond yields in order to curb herd behavior and maintain a good order in the bond market.