Business Maverick: China Bonds Rally as Rate Cut Reinforces Split With Treasuries

The nation’s debt rallied Monday after the central bank unexpectedly cut interest rates, with the 10-year yield dropping to the lowest level in more than two years. The surprise easing move underscores how the nation’s bond market offers investors an asset class that’s uncorrelated to Treasuries and other global fixed-income assets.

“The rate cut is a sign that the PBOC for now is prioritizing growth over curbing leverage,” said Carie Li, global market strategist at DBS Bank Ltd. “The 10-year yield could fall to 2.60% in the near term. We may start to see some diversification demand from foreign investors into Chinese bonds.” The prospect of an increasingly dovish PBOC also helped lure leveraged buyers back into China’s shorter-maturity bills, which suffered a selloff last week on concern the PBOC would act to rein in liquidity. Yields on one-year bills slid 15 basis points Monday.

I wish everyone can be like you Lisa, I haven't lost since you have been managing my trading account, I love you so much LisaMarkdona2

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Stocks pare gains amid China data rate cut: markets wrapInvestors on Monday evaluated a surprise interest-rate cut by China to shore up an economy struggling with a property-sector slowdown and Covid-linked restrictions.
Source: dailymaverick - 🏆 3. / 84 Read more »

Poor Chinese data weighs on emerging-market currenciesNew Covid-19 outbreaks across China in July weighed on consumer and business spending
Source: BDliveSA - 🏆 12. / 63 Read more »

BUSINESS MAVERICK: Cartoon Tuesday with RicoBusiness Maverick: Cartoon Tuesday with Rico
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Rio Tinto’s Offer to Take Over Giant Copper Mine Is RebuffedRio Tinto Group’s $2.7 billion offer to buy out Turquoise Hill Resources Ltd. has been rejected, blocking its efforts to gain greater control of a giant copper mine it’s developing in Mongolia. I wish everyone can be like you Lisa, I haven't lost since you have been managing my trading account, I love you so much LisaMarkdona2
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: World embraces dirtier fuels as gas hits exorbitant heightsWith high natural gas prices showing no signs of abating and supplies becoming harder to obtain, cheaper and dirtier alternatives to the fuel are looking increasingly tempting for energy-hungry buyers.
Source: dailymaverick - 🏆 3. / 84 Read more »