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China bonds rally with 10-year yield hitting a multi-decade low on rate cut expectations
China bonds rallied Monday with the 10-year yield dropping below the key psychological level of 2% to hit a multi-decade low, amid expectations that Beijing could expand its stimulus measures to shore up the economy. Yields on China’s 10-year government bond, which move inversely to prices, fell to 1.9636% on Monday, data from LSEG showed, marking its lowest level in 22 years. 30-year bond yields dropped to 2.164%. The bond rally is mainly driven by expectations of a further cut to the reserve requirement ratio for commercial lenders, Tommy Xie, head of Asia macro research at OCBC Bank, said in a note on Monday. ... (full story)