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Bloomberg
China’s red-hot bond rally is ending the year on a high note.
The nation’s 10-year government bond futures surged as much as 0.49 percent in intraday trading, the most since November 14, and the yield on the notes fell in the cash bond market. This came as the PBOC net injected $32 billion into the financial system through open-market operations.
The increased supply of funds helped push down the overnight repurchase rate, which made buying debt cheaper.
The yield on China’s 10-year government bonds has fallen about 60 basis points this year as the economy slowed and a plunge in stocks sent investors to haven assets.