Chinese Bond Yields Slip to New Lows, Defying PBOC Pushback
- HSBC’s Major sees 10-year yields falling to 2% by year-end
- Gap between China’s 3- and 10-year yields widest since 2020
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Chinese bond investors are pushing yields to new lows as they price in a gloomy outlook for economic growth and brush aside the central bank’s efforts to cool a rally in longer term debt.
The yield on China’s benchmark 10-year government bond is set to close at a record low level on Thursday, while the 30-year yield extended declines to the lowest in almost two decades. The moves follow a wave of growth forecast downgrades for China by global banks, and come as authorities mull mortgage rate cuts to ease a real estate crisis extending into its fourth year.