China Bond Frenzy Roars Back as Yield Falls Toward 19-Year Low
- Government debt rally resumes after taking one-week break
- China may cut reserve ratio as it sells special bonds: Nomura
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A recent bull run in China’s government bonds is making a comeback after a one-week break, a sign that traders are getting over policymakers’ implicit guidance that the rally has gone too far.
The yield on 30-year government bonds slipped for a third straight day to approach the lowest level since 2005, according to data compiled by Bloomberg. The rally comes in a market where traders weigh the impact of China’s plan to boost its issuance of ultra-long sovereign notes and the prospect of further monetary easing by the central bank amid a weak economy.