China 10-Year Debt Posts Weekly Drop as Growth Beats Forecast

China’s 10-year government bonds declined this week on speculation the central bank is more likely to raise borrowing costs after gross domestic product increased more than expected in the second quarter.

Asia’s largest economy grew 9.5 percent from a year earlier, compared with the 9.3 percent median estimate of economists surveyed by Bloomberg, the statistics bureau said July 13. The People’s Bank of China drained a net 86 billion yuan ($13.3 billion) from the financial system this week using bill sales, the first withdrawal in two months, according to data compiled by Bloomberg.