China’s Growing Pile of Long-Term Debt to Deepen Pricing Stress

China is issuing a greater proportion of longer-maturity sovereign debt to secure financing, but the increase in supply risks pushing up yields and weighing on already-weakening demand.

The share of Chinese bonds with maturities beyond 10 years has climbed to around 31% of outstanding central and local government debt, the highest level in a decade and up from a low of 11.6% in 2018, according to data compiled by Bloomberg.