China’s Bonds Rally on Signs of Policy Easing to Aid Economy
- Benchmark 10-year bond yield falls below key 3% level
- China State Council raises possibility of RRR cut for support
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China’s government bonds rallied, sending the benchmark 10-year yield to the lowest level since August, after the government indicated that the central bank could loosen its policy to support the economy.
The yield on the most actively traded 10-year sovereign notes tumbled seven basis points to 2.99%, while futures contracts of the same tenor jumped by the most in over a year. A gauge of trader expectations for borrowing costs in the future slid to the lowest level since January.