Bonds
China Bond Selloff Deepens on Cash Squeeze, Stocks Optimism
- Benchmark 10-year yield rises to highest since December
- Xi meet with business leaders signals private sector support
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A selloff in China’s bonds extended into a fifth day amid signs investors are shifting some funds to stocks and seeking out higher yields in the short-term money market.
Sovereign yields had slumped to record lows due to sluggish growth, a dearth of attractive assets and concern over the impact of US levies on the economy. Now respite from tariff headlines, a rally in local shares and tightening cash conditions are threatening this dynamic.