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CHINA: Bond Wrap

CHINA
  • Ahead of National Holiday’s next week, the PBOC cut the 14-day repo rate by 10bps. The 14-day rate is typically used around holiday times where a 7-day repo would expire.
  • The market saw this as potential evidence of further policy moves to come.
  • Equity markets were strong again, following last weeks’ rally.  Bonds were quiet.

 

2yr 1.374%          5yr 1.705%          10yr 2.035% (-0.5bp)           30yr 2.150%

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  • Ahead of National Holiday’s next week, the PBOC cut the 14-day repo rate by 10bps. The 14-day rate is typically used around holiday times where a 7-day repo would expire.
  • The market saw this as potential evidence of further policy moves to come.
  • Equity markets were strong again, following last weeks’ rally.  Bonds were quiet.

 

2yr 1.374%          5yr 1.705%          10yr 2.035% (-0.5bp)           30yr 2.150%