China Warns of Growing Risks from Bond-Buying Frenzy

Reported 8 months ago

China has issued warnings through state media reports regarding the escalating bond-buying frenzy, cautioning investors of the challenges in sustaining returns exceeding 10% this year. The People's Bank of China-backed Financial News highlighted that rising yields could pose risks for long-duration bonds facing potential capital loss. Despite recent bond demand, including a successful 50-year special bond auction, and declining 30-year government bond yields to a seven-week low, the PBOC has kept key interest rates unchanged due to liquidity abundance and yuan stabilization concerns.

Source: YAHOO

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