China Bonds Rally on Hopes PBOC Will Ease to Stimulate Growth

(Bloomberg) — China’s government bonds extended a recent advance, pushing the benchmark yield to the lowest level since November, as traders priced in more monetary easing.

The 10-year yield dropped one basis point to 2.81%, taking its decline from this year’s peak to 12 basis points. Traders have piled into Chinese sovereign debt this month as muted inflation and a weak manufacturing print fueled hopes for further policy support.