China Stocks Rise With Bonds as Yuan Drops on Surprise Rate Cut
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China’s stocks and bonds rallied, sending the 10-year yield down by the most since 2008, after the central bank unexpectedly cut interest rates. Interbank lending rates dropped and the yuan slid the most in two weeks.
The Shanghai Composite Index of shares advanced 1.9 percent and a gauge of Chinese equities in Hong Kong jumped 3.8 percent, the biggest gain in a year. The yield on government bonds due September 2024 fell 17 basis points to 3.53 percent in Shanghai, which ChinaBond data indicate would be the largest drop in six years for a benchmark 10-year bond. The seven-day repurchase rate and the yuan declined by the most since September.