China's Bond Market Faces Supply Surge Amid Economic Challenges

Reported about 2 months ago

China's government bond issuance is set to double this month to combat falling yields, with expectations of reaching around 1.4 trillion yuan. Despite concerns over a slowing economy and record low yields, analysts predict that this surge in supply, coupled with recent policy interventions, may create barriers to further bond gains while limiting yield increases to support economic growth. However, demand for safe assets remains strong as recent economic data shows signs of weakness.

Source: YAHOO

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