China Bond Yield Jumps by Most in Three Months as Rout Deepens
- Government sells 5-year debt at highest cost since 2014
- Investors grow more bearish as PBOC keeps liquidity tight: ANZ
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China’s government bonds slumped across tenors, pushing the 10-year yield up by the most since February, on bets regulators’ deleveraging campaign still has a long way to go.
The yield on 10-year government bonds spiked 7 basis points to 3.7 percent as of 5:17 p.m. in Shanghai, while the cost on the five-year note jumped to the highest in more than two years. The selloff accelerated after the Ministry of Finance sold five-year debt at the highest cost since 2014. This suggests financial institutions are betting the yields will climb even further, according to Guotai Junan Securities Co.