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Bloomberg
China’s 10-year government bonds fell for a seventh week, building on the longest run of declines since 2013, amid concerns the nation’s deleveraging campaign will drive borrowing costs up further.
The yield on 10-year sovereign debt climbed eight basis points this week to close Friday at 3.65 percent, according to data compiled by Bloomberg. That’s the longest streak since the third quarter of 2013, when bonds tumbled after a cash crunch drove the benchmark money rate to a record high of 12.45 percent. The 10-year sovereign yield climbed to the highest level in two years on Wednesday.
China has issued a raft of directives aimed at containing financial risks, spurring concerns that money will be pulled from the market. On Thursday, regulators asked financial institutions to submit data on the costs of interbank borrowing by the end of the day, Shanghai Securities News reported on its website on May 11, citing unidentified people. That followed a Financial News report that said the central bank is increasing coordination with other financial regulators.