Bonds
China’s Bond Yields Seen Dropping to 1.5% on Policy-Driven Rally
- Yield on 10-year bond falls 10 basis points in two days
- Fall in yield comes as policymakers vow supportive policy
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China’s shift toward a looser monetary policy next year is spurring bullish bets that yields on its sovereign debt will further tumble from record lows.
Tianfeng Securities, Zheshang Securities and Standard Chartered Bank are among the analyst firms that predict 10-year yields will drop to as low as 1.5%-1.6% by the end of 2025. They fell five basis points to 1.86% in morning trading, adding to the five basis points decline on Monday after the readout of a key meeting of China’s top leaders. The benchmark CSI 300 Index rose as much as 3.3% in early trading Tuesday.