Bonds

China’s Onshore Junk Bond Yields See Biggest Jump Since 2022

  • Bond market tumbles as central bank warns of rally risks
  • Yields had fallen to record lows, stoking official concerns
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China’s push to tamp down a rally in government bonds is beginning to take a toll on corporate debt markets.

The average yield for one-year corporate yuan bonds with AA ratings — typically considered junk debt in the onshore market — rose 6 basis points Monday, the largest jump since December 2022. Average yields for most other corporate bonds rose more than 5 basis points.