Economics
China Bonds Erase Loss as Credit Growth Falls Short of Estimates
- Policy makers said to expand municipal debt-swap program
- Further monetary easing can't be ruled out: Guotai Junan
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China’s 10-year sovereign bonds erased losses after a measure of new credit fell in October and a report suggested policy makers are prepared to guide interest rates lower.
Aggregate financing totaled 476.7 billion yuan ($74.8 billion) in October, less than half the 1.05 trillion yuan predicted in a Bloomberg survey, data showed Thursday. The government will raise municipal debt-swap quotas by as much as 25 percent to help regional authorities replace high-cost borrowings with cheaper bonds, people familiar with the matter said Wednesday. Premier Li Keqiang said China can further lower funding costs, Market News reported.