On Eve of Lunar New Year, China’s Bond Investors Are Hurting
- Few reasons to cheer as bonds set for biggest drop since 2010
- PBOC’s deleveraging efforts, rising inflation add to concerns
PBOC Said to Order Banks to Curb Loans
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China’s embattled bond investors should expect little respite in the Lunar New Year.
Since an 11-quarter debt rally came to an abrupt end last month, losses have deepened and analysts are turning more bearish. The benchmark 10-year sovereign yield is heading for its biggest monthly increase since October 2010, rising to levels last seen during the height of the turmoil in December. And there is no sign of a let-up in policy makers’ efforts to weed out excessive leverage in the financial system.