(Bloomberg) -- Chinese bond traders have few things to celebrate despite this year’s unprecedented market rally.Most Read from BloombergMicrosoft Orders...
Morgan Stanley’s Wilson Says a 10% Stock Market Correction Is ‘Highly Likely’Biden’s Biggest Donors Left Powerless to Sway Him to End Bid
The gloomy outlook is casting a pall on the industry, already contending with increased Communist Party control, sinking salaries and a slump in dealmaking. China’s soaring bond prices are little consolation to traders worried about their long-term prospects. An aggregate index for Chinese debt has gained 3.88% this year, outperforming all regional markets, according to data compiled by Bloomberg.
The precipitous drop in yields is worrying the nation’s central bank, the People’s Bank of China. Policymakers have been seeking to talk up yields for months and are now preparing more drastic actions. The excessively low yields are seen as endangering financial stability and pressuring the yuan. Yields on the onshore 10-year government bonds climbed to 2.285% as of late Monday, the highest in more than a month, yet not far from the record low of 2.18%. Yields on 30-year notes have been trading at around 2.51%, highest in 3 weeks, close to its lowest level since 2005. By contrast, the US 10-year Treasury bond yields about 4.31%.
A top mutual fund house in Shanghai has been studying the scenario of zero interest rates since last year, with economic fundamentals suggesting lower yields are here to stay, according to Ng, a fund manager. Mark O'Hare became a billionaire after BlackRock acquired his data company. Now he's turning his employees into millionaires.
Negative Interest Rates Sovereign Bond Market Volatility Fixed-Income Japan Central Bank China Asymptote Investment Research Alex Hu China
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
A $54 Billion Long-Bond ETF Sees Record Haul as Traders ‘Fight the Fed’The biggest long-duration bond ETF raked in record cash this week as a cohort of investors recalibrate bets on when the Federal Reserve will cut interest rates this year.
Read more »
Bond traders’ rate-cut party is yet to get goingThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Read more »
Bond Traders Boldly Bet on 300 Basis Points of Fed Cuts by March(Bloomberg) -- Traders in the US rates options market are embracing a nascent wager on the Federal Reserve’s interest-rate path: a whopping 3 percentage...
Read more »
Bond Traders Boldly Bet on 300 Basis Points of Fed Cuts by MarchTraders in the US rates options market are embracing a nascent wager on the Federal Reserve’s interest-rate path: a whopping 3 percentage points worth of cuts in the next nine months.
Read more »
Traders May Overestimate Impact of BOJ Cutting Bond PurchasesTraders appear to be going overboard in their view of the impact that will result from the Bank of Japan reducing bond buying by what its governor called a “substantial” amount.
Read more »
French Bond Rout Pauses as Traders Assess Le Pen’s ReassurancesFrench government bonds won some respite after assurances from far-right leader Marine Le Pen that she would co-operate with President Emmanuel Macron should she prevail in upcoming national elections.
Read more »