August 09, 2024 00:14 GMT
China: Authorities Continue To Show Concern As To Falling Yields
CHINA RATES
- Chinese authorities continued their focus on bond yields and their ongoing decline.
- In a sign of no tolerance towards speculators, the large state-owned banks were in the market Thursday selling 7-year maturity bonds
- Known as being a liquid part of the curve, 7-year securities a key maturity where it is suggested that speculation occurs
- Some regional banks in the larger regions were noticeably absent in any bond market activity yesterday, suggesting authorities may have directed them to cease activities.
- This news comes ahead of today’s CPI print in China.
- Surveys point to a modest uptick in the month-on-month CPI print however the risk to the authorities concerns on bond yields is today’s CPI surprises on the downside.
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