China Bonds Fall as Central Bank Gauges Demand for Lending Tool

  • One-year rate swaps advance most since July last year
  • PBOC tests 14-day repo demand first time since February

China’s bonds fell as the central bank gauged demand for a 14-day lending tool for the first time since February, fueling speculation policy makers will tighten the availability of cheaper seven-day funds as they seek to limit the use of short-term borrowing to finance debt purchases.

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