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China's 10-Year yield sinks to record low on bets that PBOC will ease

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China's 10-year yield dropped past the key psychological milestone of 2 per cent and was at a record low, as traders ramped up wagers that authorities would ease monetary policy further to bolster the weak economy.
The article from The Business Times discusses the significant drop in China's 10-year government bond yield to a record low of 2.56%, reflecting market expectations that the People's Bank of China (PBOC) will implement further monetary easing measures. This decline in yields comes amidst concerns over a slowing economy, with investors betting on more stimulus to counteract the effects of a property market slump and weak consumer demand. The PBOC has already cut key policy rates and reduced the reserve requirement ratio for banks, signaling a dovish stance. Analysts suggest that the low yields are also influenced by a lack of alternative investment options and the anticipation of further policy support, including potential rate cuts and liquidity injections, to bolster economic recovery.

Read the Full Business Times Article at:
[ https://www.businesstimes.com.sg/companies-markets/banking-finance/chinas-10-year-yield-sinks-record-low-bets-pboc-will-ease ]