China’s 10-Year Yield Sinks to Record Low on Bets PBOC Will Ease

  • Bond demand shows concerns about fragile economic recovery
  • Expectations high for PBOC to cut RRR further to aid growth
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China’s 10-year yield dropped past the key psychological milestone of 2% and was at a record low, as traders ramped up wagers that authorities would ease monetary policy further to bolster the weak economy.

After declining for a fifth straight week, the benchmark yield dropped four basis points to 1.9775%. The 30-year yield also declined four basis points to 2.16%, after falling below its Japanese counterpart for the first time in about two decades last month.