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ANZ Look For 10-Year CGB Yield To Move Lower

CHINA RATES

ANZ note that “the yield on the 10y China Government Bond jumped above 2.70%, driven by bullish sentiment from stock rescue and news that China may raise this year’s budget deficit above 3%.”

  • “However, we believe that the stock rescue will have little direct impact on the interest rate outlook. The adjustment to the budget deficit will not be stimulatory, considering the fiscal difficulties of local governments.”
  • “Given this, we believe the surge in the 10y yield will be short-lived. In addition, market expectations of a rate cut remain as property sector woes continue.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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