Wen Easing Leads to Steepest Yield Curve Since May: China Credit
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China’s long-term bonds are offering investors the biggest yield advantage over shorter-maturity notes in six months as Premier Wen Jiabao relaxes lending curbs to combat a slowdown in Asia’s biggest economy.
The gap between the government’s one-year note yields and 10-year securities widened to 102 basis points on Nov. 11 from 62 at the start of the month, Chinabond data show. That’s the most since May 4. The difference in U.S. Treasuries with similar maturities rose four basis points since October to 204, while the so-called yield curve for Indian bonds shrank two to 19, according to data compiled by Bloomberg.