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China Easing Sends Rates Lower, Steady Trends Elsewhere

ASIA RATES

CHINA

  • Bond yields gapped lower at the front end following an unexpected cut in the reverse repo rate and move lower in the 1 and 5 year Loan Prime Rates.
  • Front end of the curve (2 and 5 year) saw yields 3.5bps lower on the open with longer dated bonds 1.5bps lower in yield, testing the PBOC’s resolve to ward against ultra low bond yields

2yr 1.56% 5yr 1.91% 10yr 2.238% 30 year 2.448%

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CHINA

  • Bond yields gapped lower at the front end following an unexpected cut in the reverse repo rate and move lower in the 1 and 5 year Loan Prime Rates.
  • Front end of the curve (2 and 5 year) saw yields 3.5bps lower on the open with longer dated bonds 1.5bps lower in yield, testing the PBOC’s resolve to ward against ultra low bond yields

2yr 1.56% 5yr 1.91% 10yr 2.238% 30 year 2.448%

Keep reading...Show less