China’s benchmark yield dropped to the lowest in more than three years and the yuan slid, after the central bank unexpectedly cut a key interest rate amid signs of further economic weakness. The 10-year yield dropped seven basis points to 2.56%, while the yuan weakened in both onshore and offshore trading. The People’s Bank of China lowered the rate on one-year loans by 15 basis points to 2.5% on Tuesday and it also cut a short-term policy rate, just minutes before a slew of weaker-than expected economic data further impacted sentiment. Whether the rate cut will be able to repair the intensifying bearish sentiment ... (full story)