China Corporate Bond Spreads Widen to Most in Year on PBOC Move
- Three-year corporate bond spread at 55 basis points on Tuesday
- The central bank implemented its bond initiative in August
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Spreads for Chinese corporate notes have widened to the most in a year as investors piled into the nation’s sovereign debt market.
The yield premium of three-year AAA-rated corporate yuan bonds over comparable central government debt grew to 55 basis points on Tuesday, a level not seen since last September, according to data compiled by Bloomberg. Spreads were little changed on Wednesday, tightening by about one basis point.