Yields on 10-year Chinese bonds fall to 3% Подробнее: https://www.vestifinance.ru/articles/123323

UNITED STATES, WASHINGTON (VOP TODAY NEWS) — The yield on ten-year government bonds in China fell to 3% for the first time since 2016 amid a general increase in interest in the most reliable assets amid a weakening global economic recovery.

The yield on these securities fell on August 13 by 1 basis point (bp) to 3%, its decline since the April peak was about 40 bp. n.

“The decline in the yield of Chinese government securities is probably the result of a rally in the US Treasuries market, as well as disappointing data on the volume of bank lending,” said a trader at China Merchants Bank Co. At Sytse.

“The potential for lowering returns, however, is limited unless China, of course, cuts rates on medium-term lending operations,” Bloomberg quoted the expert as saying.

Yields on 10-year US government bonds on Monday fell 9.1 bp. n. to the lowest since October 2016 1.64%.

The volume of new bank lending in national currency in China in July fell one and a half times compared with the previous month and amounted to 1.06 trillion yuan ($ 150 billion), the People’s Bank of China said on Monday.

Total financing (including bank loans, off-balance loans, as well as the placement of shares and bonds) last month more than doubled, amounting to 1.01 trillion yuan against 2.26 trillion yuan a month earlier.

Analysts believe that the yield on Chinese government securities will continue to decline. Thus, according to the forecast of Pengyang Asset Management, the yield on ten-year bonds may drop to 2.65%. The Hexa AMC forecast provides for a decrease in the yield of these securities to 2.75-2.85% per annum by the end of this year.

HFT Investment Management experts note that the current rate of return on ten-year government bonds of the PRC is still too high, given the economic situation in the country.

“We expect the yield to decline, because before that its decline was tiny compared to government securities in the United States and other countries,” said HFT analyst Yiping Chen

More details: https://www.vestifinance.ru/articles/123323

Online:

This article is written and prepared by our foreign editors writing for VOP from different countries around the world – edited and published by VOP staff in our newsroom.

Our Standards, Terms of Use: Standard Terms And Conditions.

Contact us: voiceofpeopletoday@gmail.com

VOP Today News — Breaking news source, real-time coverage of the world’s events, life, politics, business, finance, economy, markets, war and conflict zones.

Stay connected with VOP Today News on Twitter – VOP Today News on Facebook, also with our online services http://j.mp/2hDUK4x and never lost the breaking news stories happening around the world.

Support The VOP from as little as $1 – it only takes a minute. Thank you.

We are the Voice of People — the only funding and support we get from people – we are categorically not funded by any political party, any government somewhere or from any grouping that supports certain interests – the only support that makes VOP possible came from you.