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 central bank expanded its gold reserves for a second month in December, signaling renewed appetite after temporarily pausing purchases last year as prices soared.

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.

Gold futures rose Tuesday to snap a two-session losing streak, gaining from a softer dollar after President-elect Trump rejected reports of a more moderate trade policy approach. Gold prices broadly shrugged off stronger than expected U.