China Sovereign Bonds Slump as Wealth Curbs Seen Hitting Demand
- PBOC will step up monitoring of lenders’ WMPs: Financial News
- Move to reduce investment in debt, money market, SocGen says
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China’s government bonds extended declines, pushing the 10-year yield to a 16-month high, on speculation policy makers’ efforts to clamp down on wealth-management products will exacerbate a debt selloff.
The yield on sovereign debt due November 2026 climbed 10 basis points to 3.5 percent, according to National Interbank Funding Center prices. That’s the highest for the similar-maturity benchmark since August 2015, ChinaBond data show. Bond futures plunged by a record last week, the 10-year yield surged by the most in two years and interest-rate swaps reached a 20-month high.