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Pekin, China, November 8, 2024 in the Chinese People’s Bank (PBOC) building.
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China’s sovereign bond prices lead to the highest levels of this year, as investors will increase financial costs and have invested bets in investors to reduce interest rate.
According to LSEG, China gives a 10-year government bond to prices, according to LSEG, according to LSEG, 10 years of the highest level 10 points earlier this year. The increase in 25 main points from the record parts of January.
30-year-old sovereign bonds reaching 2% to reach 2% to reach 2% to reach 2% to reach 2% on Monday, reaching 1.643% to 1,643%. Up to 1 o’clock in Beijing, the products closed some gains.
“Growth optimism returned in China”, “Frederic Neumann, HSBC’s head Asian economist, CNBC via E-mail.”
The Chinese government has risen to bond productivity from historical amers in January Optimism over prospects for the next economy Authorities set an ambitious growth target About 5% of a high-level government work last week.
Beijing was also announced A rare increase in financial budget deficit is up to 4% of GDP – At least 2025, in the highest 2025 with the plan of releasing 1.3 trillion yuan ($ 178.9 billion) in Ultra-long-term special treasury bonds An additional 300 billion bond emissions quota since last year.
The growing supply of bonds usually provides less attractive to investors in existing bonds, prices and support.
As trade tensions increase, the head of the larger Chinese FX and rating strategy in BNP Paribas in the United States Ju Wang, Ju Wang, Ju Wang’s strengthening government bonds can be further ramp.
“The pace of long-dated bonds is faster than the potential, there are long-term rates to make the government’s real estate market and consumption and consumption.
Money delaying facilitation
Investors collected expectations to reduce interest rates in the near future, because the People’s Bank reiterated the priority to stabilize the yuan on the growing trade of trade tensions with the United States
Last Thursday, Central Bank Governor Tan Gongsheng reiterated the position of the Central Bank Cut interest rates and tap liquidity The financial system to the amount of cash to hold the banks as “in the appropriate time” reserve.
Authorities have repeatedly pointed to reduce political rates since last year, but have not yet continued.
On Thursday reiterated the money that the money PBOC would have to protect the currency stability “It’s a reasonable and balanced level.” Preventing Yuan’s weakening, the US President Donald Trump said that he could be seen as good intentions on a trade contract until any negotiations with any negotiations.
This China Sea Yuan On Monday, it increased by 0.24% to trade in 7,2588 against US dollars.
“Rising bond productivity in China, especially in the context of depreciation in Renminbi in the context of land productivity, provides a reflection weight,” Neumann said. This The US 10-year Treasury comes Since January, he lost more than 50 points and traded around 4.2839% on Monday.
But when he looked forward, Neumann said that the sale of bonds “can quickly run out of vapor”, “Money policy is preferred by the position of money policy (remaining).”
Investors are drowning
Sold in the bonds, followed the rally in the Chinese Maritime Exchange, pointed to risky assets to change liquidity.
The beginning of artificial intelligence, Deepsel has instructed global investors to deduce more to Chinese shares, progress in large language models and benefits to the benefits of a larger economy.
“The investor’s sense of trigger is triggered by the trigger, but more bullshit after the sea capital, which causes the capital on government bonds,” said Carlos Casanova, Union Bancaire Privée in the Asian Chief Economist Carlos Casanova.
The MSCI Chinese index was listed about 20% this year, Hong Kong was listed Hang Seng Index More than 18% of the growing global peers.
