China's central bank has asked some domestic banks to scale back their outward investments through the Bond Connect scheme, two sources with direct knowledge of the matter said. The window guidance from the People's Bank of China (PBOC)seems to be aimed at containing yuan outflows into Hong Kong, and thus ensuring less supply of yuan in offshore markets, the sources said. The southbound leg of the two-year-old Bond Connect scheme allows mainland institutional investors to purchase bonds traded in Hong Kong.