China Easing Bets Climb to Highest This Year as Growth Sputters

(Bloomberg) — Traders have ratcheted up bets on Chinese monetary easing to the most since November on signs the economy’s post-Covid recovery is running out of steam.

The cost of 12-month interest-rate swaps, which anticipate where interest rates will be in a year’s time, slipped to 2.06% this week, down from as high as 2.47% just over two months ago. At the same time, the nation’s benchmark 10-year bond yield dropped to a six-month low of 2.70% this week.