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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CHINA RATES
MNI (London) - Chinese 10-Year government bond yields have pushed below 2.50% for the first time since the early days of the COVID pandemic. The dynamics fleshed out last week (expectations/realised liquidity conditions, continued economic worry, expedited/deeper monetary easing expectations and the relative moderation of the burden of wider Chinese bond supply) had supported the space in late '23/early '24.
- The latest input came via late Monday PBoC rhetoric surrounding a potential RRR cut as part of the facilitation of looser credit conditions in a bid to support economic growth (the usual round of credit operations also got some airtime in the comments covered by Xinhua).
- This has markets tilting even more firmly towards the idea of a pre-Lunar New Year rate cut (Chinese markets will be closed for LNY 9-16 February).
- 10-Year yields closed at the lows (2.495%), within touching distance of the ’20 COVID-induced low (2.467%).
Fig. 1: China 10-Year Government Bond Yield (%)
Source: MNI - Market News/Bloomberg
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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