Central Bank conducts 500 billion yuan reverse repo as 10-year U.S. Treasury yield tops 5%

The central bank conducted a 500 billion yuan six-month outright reverse repo operation on September 15. Data shows M2 money supply grew 7.5% year-on-year in August, while aggregate social financing increased by 23.91 trillion yuan in the first eight months, down 2.64 trillion yuan year-on-year. Additionally, the 10-year U.S. Treasury yield surpassed 5% for the first time in three years. Other developments include Microsoft's new AI conduct guidelines, EU proposals to restrict AI for minors, and Kioxia Holdings considering a $10 billion U.S. IPO.