China Bond Traders Still on Edge After Rate Cuts Spur Mini Rallies
- Yield on 10-year sovereign notes trading at lowest in a month
- Central bank’s latest rate cut wasn’t game changer, OCBC says
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While China’s central bank is helping stem the panic that in October drove its sovereign bond yield to five-month highs, the buoyant mood in the market is unlikely to last.
A series of unexpected policy-rate cuts and liquidity injections keep triggering mini rallies in China’s sovereign-debt market this month. China’s 10-year benchmark yield fell 1 basis point on Tuesday to 3.18%, the lowest in a month, after the People’s Bank of China injected 120 billion yuan ($17 billion) to the banking system in open market operations.