Reported 12 months ago
The yield on China’s 10-year government bonds dropped to a historic low of 2.18%, the lowest since Bloomberg began tracking the data in 2002. This decline is attributed to pessimism about the domestic economy, lackluster growth, expectations of interest-rate cuts, and ample liquidity in the financial system. Despite efforts by the People’s Bank of China to cool the bond market rally, factors like weak loan demand and persistent economic challenges continue to drive bond-buying. Traders are scaling back expectations for significant fiscal stimulus, with some anticipating the benchmark yield to drop further to around 2.15%.
Source: YAHOO