Economics
Li Warns of Risks as Yields Drop Most Since Lehman: China Credit
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China’s short-term bond yields are sliding at the fastest pace in five years as speculation builds that monetary policy will be loosened to combat what Premier Li Keqiang says are “difficulties and risks” for the economy.
The yield on the government’s two-year bonds tumbled 93 basis points this quarter to 3.41 percent, ChinaBond data show. That would be the biggest decline since a 214 basis point drop in the final three months of 2008, when global credit markets seized after Lehman Brothers Holdings Inc. collapsed. The average yield on local currency sovereign debt in emerging markets fell five basis points since Dec. 31 to 5.51 percent, according to data compiled by Bloomberg.