Safety Flight May Take China 10-Year Bond Yield to 2002 Low
- Cost on benchmark sovereign notes may slide to 2.6%: StanChart
- PBOC cuts rates on reverse repos, injects cash as markets sink
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The yield on China’s 10-year government bonds could drop to its lowest level since 2002 as a worsening virus outbreak leads investors to seek havens.
Cash bonds are likely to outperform in the near term, according to Becky Liu, head of China macro strategy at Standard Chartered Bank (HK) Ltd. She sees the 10-year government bond yield dropping to 2.6%, which would imply the lowest yield since 2002. Citic Securities Co. also sees the yield falling to as low as 2.6% while DBS Group analysts say yields “should be closer to 2.5%.”