China Watchers Caught Off Guard as Bond Rout Just Won't End
- No one knows how long this process will last: BNP strategist
- Sovereign yield spikes as curve flattens on crackdown concerns
BlackRock's Rieder Says EM Traders Must Watch China
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The ferocity of China’s bond rout is surprising some of the market’s top observers.
The yield on sovereign debt due in a decade surged to a two-year-high of 3.7 percent last week, wrong-footing analysts from Citic Securities Co. and Haitong Securities Co. -- the country’s two biggest brokerages -- who had in April predicted a maximum level of 3.6 percent in the near term. The tumble comes amid intensifying efforts to crack down on excessive borrowing, a drive that has beaten down stocks and pressured the yuan.