Chinese government bond futures reach yearly high as yields decline

8 articles · Updated · Yicai Global · Apr 23

The main 30-year bond contract closed at CNY114.18 after peaking at CNY114.37, with yields on 30-year and 10-year bonds dropping to 2.2135% and 1.731%, respectively.
Analysts attribute the rally to loose monetary conditions and abundant liquidity, but recommend caution as institutions begin to shift to a more neutral stance and take profits.
Short-term rates like DR001 remain low due to seasonal liquidity, and the upcoming special treasury bond issuance is expected to keep interest rates subdued, with further yield declines possible before the Labor Day holiday.

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