China Easing Bets Climb to Highest This Year as Growth Sputters
- Nation’s 10-year bond yield dropped to six-month low this week
- Nomura has told clients to buy five-year debt on weak growth
The People's Bank of China (PBOC) building in Beijing.
Source: Bloomberg
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Traders have ratcheted up bets on Chinese monetary easing to the most since November on signs the economy’s post-Covid recovery is running out of steam.
The cost of 12-month interest-rate swaps, which anticipate where interest rates will be in a year’s time, slipped to 2.06% this week, down from as high as 2.47% just over two months ago. At the same time, the nation’s benchmark 10-year bond yield dropped to a six-month low of 2.70% this week.