China's pump-priming spurs investor bets on further monetary easing


The People's Bank of China (PBOC) building in Beijing, China. - Bloomberg

SHANGHAI/SINGAPORE: As China's government speeds up spending plans to strengthen an economy recovery that has spluttered this year, investors are betting the central bank will help out by easing monetary policy further.

Yuan interest rate swaps moved swiftly lower after the government on Tuesday announced a 1 trillion yuan ($136.69 billion) sovereign bond issue and also said provincial governments would be allowed to bring forward borrowings.

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