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China Bond Frenzy Roars Back as Yield Heads Toward Record Low
A recent bull run in China’s government bonds is making a comeback after a one-week break, a sign that traders are getting over policymakers’ implicit guidance that the rally has gone too far. The yield on 10-year sovereign notes slipped for a third straight day to 2.27%, edging closer to the lowest level since official data started in 2002. The rally comes as traders weigh the impact of China’s plan to boost its issuance of ultra-long sovereign notes and the prospect of further monetary easing by the central bank amid a weak economy. Earlier this month, a rapid rally in Chinese bonds was disturbed by the ... (full story)