China's central bank said on Friday it has suspended treasury bond purchases, triggering a jump in yields and spurring speculation that the move was aimed at defending a falling currency.

China’s bond yields, including the benchmark 10-year government bond yield, have plummeted to their lowest levels on record with investors rushing to haven asse

China’s central bank said it will suspend buying government bonds, its latest attempt to temper investor bets on weak economic growth that have undermined the currency and sapped confidence among businesses and consumers.

China's central bank said on Friday it has decided to suspend treasury bond purchases temporarily due to short supply of the bonds, triggering a jump in yields across tenors. The People's Bank of China (PBOC) said in a statement it would resume bond buying depending on supply and demand in the government bond market.

The People's Bank of China said Friday that it will suspend purchases of sovereign debt this month as the supply of the bonds has fallen short of demand. Christy Tan, investment strategist at Franklin Templeton Institute,