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Key Chinese Rate Benchmarks Operate Around Levels Not Seen Since ZCS Times

CHINA RATES

5-Year Chinese swap rates and 10-Year CGB yields have printed levels not seen since November (ZCS times) in recent days, after a run lower on the back of the worry surrounding an uneven economic rebound in China, with debate re: the need for further policy easing intensifying. Those moves have edged away from extremes (lows in yield/swap rate terms), with sell-side names pointing to profit taking and the very different economic regime that prevailed last time these levels were registered as the driving factors over the last couple of sessions.


China 10-Year Government Bond Yield & 5-Year Swap Rate (%)

Source: MNI - Market News/Bloomberg

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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