Economics
China Bond Traders Are Betting on More Stimulus After Brexit
- PBOC may cut reserve ratio as soon as July: StanChart, ANZ
- The 10-year sovereign yield dropped most this year in June
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Brexit may be bad news for China, but it’s improving a poor year for the country’s bond investors.
The 10-year government bond yield fell 14 basis points in June, the biggest decline this year, after Britain’s vote to leave the European Union spurred demand for haven assets. Before the shock decision added fuel to a rally in bond markets worldwide, Chinese yields had seen the only increase among similar-maturity sovereign debt in the world’s 15 biggest economies.