Skip to content

China 10-Year Yield Falls to Lowest in 18 Months on Easing Bets

  • PBOC injected most short-term cash in two months on Tuesday
  • Interbank interest rate drops after jumping the most in a year

The yield on China’s 10-year sovereign bonds declined to the lowest level since June 2020, as interbank borrowing costs fell after the central bank boosted short-term liquidity.

China’s 10-year government bond yield fell two basis points to 2.795% as of 4:40 p.m. in Shanghai. On Tuesday morning, The People’s Bank of China boosted its injection of short-term liquidity into the financial system to 190 billion yuan ($29.8 billion), the most in two months. The operation pushed an indicator for interbank rates lower, after it soared the most in a year in the previous session.