China Sovereign Bonds Erase Drop Fueled by Rotation Into Stocks

Chinese government bonds erased an earlier decline that drove yields on long-term notes to the highest levels this year as investors piled into stocks.

The yield on 10-year bonds slipped one basis point to 1.88% after rising as much as three basis points to 1.92%. The rate is still poised to increase for a third straight month, the longest run since 2022. China’s markets will be shut Oct. 1-8 for the National Day holidays.