TMTPost Morning Voice Broadcast: PBOC Establishes BNSF Non-Bank Large Redemption Swap Facility for Bond Market

On October 26, the PBOC announced the establishment of the BNSF non-bank large redemption swap facility for the bond market. When systemic pressure arises in the bond market, it supports bank wealth management subsidiaries, public fund managers and others in borrowing central bank bills from the PBOC for repo financing to purchase eligible bonds or shares of public fund products that have faced redemptions. Together with the stock market swap facility, this tool forms a non-bank emergency liquidity support mechanism covering both the stock and bond markets, positioned as rescuing the market rather than rescuing institutions.