The People's Bank of China, the country's central bank, has confirmed media reports that it has signed agreements with several major financial institutions to constantly borrow and sell Chinese treasury bonds, as part of its efforts to maintain the stability of the country's bond market. 

The financial institutions that have signed the agreements hold medium- and long-term government bonds worth hundreds of billions of yuan that are available for borrowing, according to the PBOC.

The PBOC said it will constantly borrow treasury bonds - with no fixed term and no collateral - and sell them based on the condition of the bond market.