China Bonds Drop Most Since 2013 as IPOs to Resume; Stocks Climb
- Equities bull run, share sales to attract funds from bonds
- Expected U.S. rate increase limits room for easing in China
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China’s bonds fell by the most in almost two years as plans to resume initial public offerings fueled concern that investors will switch out of debt and into equities.
The yield on sovereign notes due October 2025 climbed 11.5 basis points to 3.25 percent in Shanghai, according to National Interbank Funding Center prices. That’s the biggest jump for a benchmark 10-year note since December 2013, ChinaBond data show. Gains in financial shares led the Shanghai Composite Index to its best finish since August.