Caixin
May 12, 2022 08:26 PM
FINANCE

China Bond Bulls Revived by Lowest Borrowing Costs Since 2020

The People’s Bank of China building in Beijing. Photo: Bloomberg
The People’s Bank of China building in Beijing. Photo: Bloomberg

(Bloomberg) — Some China bond investors are betting yields will resume their declines as a liquidity glut pushes short-term borrowing costs to the lowest since December 2020.

The seven-day repo rate, a gauge of the short-term borrowing cost, dropped to 1.54% this week. It’s stayed below the central bank’s operating rate for reverse repo contracts since the start of April, the longest discount streak in two years.

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