Leather: Expect Volatility Along the Way for China
Chinese bonds advanced, with the 10-year yield dropping to match the lowest levels since 2009, as foreign inflows increase and investors seek safety from a rising number of corporate failures. The yield on sovereign notes due 2026 fell three basis points to 2.72 percent as of 4:54 p.m. in Shanghai on Tuesday. That level, the least in seven years for a benchmark 10-year security, was last seen this January when a series of cuts to the yuan’s fixing ignited volatility around the world. The one-year yield declined one basis point to 2.18 percent, the lowest since April. Capital Economics Economist Gareth Leather discusses with Bloomberg's Francine Lacqua on "The Pulse."