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PBOC Cuts Corporate Yield Spread Most Since Crisis: China Credit

China’s corporate borrowing costs are falling the most since the global financial crisis as the central bank eases monetary policy to revive bond issuance and spur a flagging economy.

The extra yield over sovereign notes that AAA rated companies pay to sell three-year bonds has dropped 60 basis points since March 31 to 126 basis points, the most for any quarter in Bloomberg-compiled data going back to 2007. Falling borrowing costs have encouraged 1.005 trillion yuan ($161 billion) of onshore yuan debt offerings in the period, poised to surpass 1.012 trillion yuan in the whole of the first quarter.