The yield on the Chinese 10-year government bond retreated to the 2.6% mark in September, approaching the two-year low hit in the prior month as lower borrowing costs and the precarious economic environment in China supported demand for safe government debt. Thin power rationing among heavyweight industries due to heat waves, a frail property sector, and the return of strict Covid lockdowns in major cities raised concerns that the world’s second largest economy won’t be able to rebound from a sluggish second quarter. NBS PMI data showed that china’s manufacturing sector contracted for two consecutive months starting July, while the Caixin reading unexpectedly fell below 50 in August. Authorities announced additional stimulus measures to combat the slowing economy, shortly after the PBoC trimmed its key lending rates for the second time this year in its August meeting.
Historically, the China Government Bond 10Y reached an all time high of 4.80 in September of 2007. China Government Bond 10Y - data, forecasts, historical chart - was last updated on September of 2022.
The China Government Bond 10Y is expected to trade at 2.66 percent by the end of this quarter, according to 王者荣耀电竞(江西)积分排榜 global macro models and analysts expectations. Looking forward, we estimate it to trade at 2.73 in 12 months time.