Economics
China Corners Bond Bulls as $35 Billion in Funds Reach Maturity
- Benchmark 10-year yield surged the most since April on Monday
- Prospect of tighter liquidity spooked sovereign-debt investors
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China’s central bank offered little in the way of relief to bond traders as it allowed last week’s massive cash injections to mature.
The People’s Bank of China skipped open-market operations again Tuesday, effectively draining 250 billion yuan ($35 billion) in liquidity from the financial system as funds come due. It said fiscal spending at the end of the month will offset maturities, according to a statement. Another 290 billion yuan is maturing in the next three days.