China’s Central Bank Stops Bond Purchases to Support Yuan

China's central bank is taking measures to support the yuan amid its depreciation, which may benefit bitcoin. Key points include:

The People's Bank of China will halt government bond purchases this month due to demand exceeding supply.
The yield on the 10-year Chinese government bond dropped below 1.6%, a 100 bps decline over 12 months.
In contrast, the U.S. 10-year bond yield rose to 4.7%, increasing the yield differential favoring the USD.
The yuan depreciated to 7.32 per USD, extending a three-month losing streak driven by tariff concerns under President-elect Donald Trump.
Analysts suggest that capital flight from the weakening yuan could enhance bitcoin's momentum.