China Bond Rally Gains Momentum as Risks Show Up Everywhere
- Stock indexes decline by more than 3% in China and Hong Kong
- Some economists see more cuts in reserve ratio requirement
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Traders in China are flocking to sovereign bonds as an expanding regulatory crackdown and concern that growth is slowing pressure risk markets.
The yield on benchmark 10-year government debt fell to the lowest in a year as stock indexes in China and Hong Kong declined by over 3%. High-yield dollar bonds dropped as much as 2 cents on the dollar.