China’s 10-year sovereign bonds capped the biggest weekly drop in five months on speculation investors are taking profits amid signs the central bank is done cutting borrowing costs for now.
The People’s Bank of China has lowered benchmark deposit and lending rates six times since November and reduced lenders’ reserve ratios in an attempt to spur a slowing economy. The monetary authority will leave its policy rates unchanged through the end of next year, a Bloomberg survey showed last week. China’s local-currency sovereign debt rallied for five months through October and the 10-year yield fell to a six-year low last week.
