China’s 10-year yield falls to decades low on rate cut hopes

“The pressure is definitely for yields to go lower” due to expectations for an interest rate cut, said Woei Chen Ho, economist at United Overseas Bank. — Bloomberg

BEIJING: China’s benchmark government bond yield fell to its lowest in nearly 22 years on mounting expectations for further monetary easing amid a fragile economic recovery and stock market sell-off.The yield on the 10-year sovereign note slipped to 2.47%, a level unseen since 2002.

The world’s second-largest economy is suffering from an extended housing slump, and its stock market is under pressure from weak investor sentiment, leading to calls for policymakers to deploy more monetary stimulus to boost growth.