HALISTER1: China Bonds Rise Most Since January on Liquidity, Mood: Guangfa

China Bonds Rise Most Since January on Liquidity, Mood: Guangfa

(Bloomberg) -- Chinese govt bonds rise most in six months this week as sentiment boosted by global sovereign bond rally, as well as PBOC liquidity injection, says Yan Yan, Shanghai-based trader at China Guangfa Bank Co.
  • After 2-month rally, yield on 10-yr govt bond declines 6.6 ppts this week, most since week ended Jan. 17; now at 2.949%
  • Demand for global sovereign bonds rises after Fed turns more dovish on rate hikes ahead of Brexit referendum next Thursday
    • Investors also adding positions given liquidity in interbank mkt; further downside in yields limited as supportive factors largely priced in
  • NOTE: PBOC injected 105b yuan to interbank mkt through open- market operations, most since week ended April 22
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Yan Yan (China Guangfa Bank Co Ltd)

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