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BofA Expect CGB Curve To Flatten Further

CHINA RATES

Bank of America note that “unlike the range-trading theme in H122, China rates have engineered strong performance since entering into Q322. Initially, front-end bonds were leading the rally thanks to the low funding costs and the consequential increase in bond market leverage. However, more recently, back-end bonds started to play catch up, given disappointing economic data and the lack of firm fiscal support. 30-Year CGB yields declined below 3.10%, close to a decade low. We think the latest flattening move in 2s10s and 5s30s curves will likely 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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