Traders Shrug Off China Pushback to Wade Back Into Bonds
- Seven-year yields drop most since 2022 as demand persists
- Intervention to curb rally has short-term impact: Nomura
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China’s early successes at curbing a government-bond rally are fast evaporating.
Sovereign yields fell across the curve on Wednesday morning, with those on seven-year bonds sliding the most since 2022, as traders digested the first bank loan contraction in nearly two decades. The data cemented bets that the People’s Bank of China will have to ease monetary policy further, undermining this week’s yield rebound, which was triggered by a slew of measures to squeeze out speculators.