China Shorter Yields Sink to Two-Decade Low as Bond Fever Builds
- Yield drop reflects bets on PBOC easing next year, Mizuho says
- One-year yield slides to 0.85%, a level unseen since 2003
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China’s one-year bond yields broke below levels last seen in the global financial crisis to the lowest in more than two decades, driven by bets on aggressive policy easing and demand for haven assets.
The yield on one-year government debt plunged 17 basis points Friday to 0.85%, the lowest since 2003, just a few hours after sliding below the psychological barrier of 1%. Benchmark 10-year bonds also rallied, with yields having now fallen on all except four days this month.