China Bonds Rally as Rate Cut Reinforces Split With Treasuries
- Nation’s 10-year yield drops to lowest level since May 2020
- PBOC for now is prioritizing growth over curbing leverage: DBS
WATCH: China Central Bank Unexpectedly Cuts Key Rate to Spur Growth
Source: Bloomberg
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China’s sovereign bonds are back on the menu for foreign investors.
The nation’s debt rallied Monday after the central bank unexpectedly cut interest rates, with the 10-year yield dropping to the lowest level in more than two years. The surprise easing move underscores how the nation’s bond market offers investors an asset class that’s uncorrelated to Treasuries and other global fixed-income assets.