China Bond Bulls Revived by Lowest Borrowing Cost Since 2020
- Yield on 10-year bond may fall toward January low: Guosheng
- Window to long China bonds opened without a rate cut: Cinda
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Some China bond investors are betting yields will resume their declines as a liquidity glut pushes short-term borrowing costs to the lowest since December 2020.
The seven-day repo rate, a gauge of the short-term borrowing cost, dropped to 1.54% this week. It’s stayed below the central bank’s operating rate for reverse repo contracts since the start of April, the longest discount streak in two years.