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Three Charts Signal Dark December for Slumping Chinese Bonds

  • Market entering ‘darkest period since 2013’s cash crunch:’ JZ
  • Ten of 19 traders say 10-year yield could reach 3% by year-end
Bloomberg business news

Why Dark Days Are Ahead for China's Bond Market

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Accelerating inflation, a weakening yuan and a cash crunch look set to deliver a triple blow to China’s bond market.

Haitong Securities Co., ranked the best fixed-income forecaster by financial magazine New Fortune, revised up its 10-year sovereign yield estimate twice in less than three weeks to as much as 3 percent. Ten of 19 banks and brokerages say the yield could touch that level by year-end with the median forecast for a climb to 2.93 percent, from 2.88 percent on Tuesday, a survey by Bloomberg shows.