China’s 10-Year Yield Hits Record Low, Testing PBOC Patience

(Bloomberg) — China’s benchmark government bond yield fell to a record low, testing policymakers’ resolve to stem the decline.

The yield on the 10-year sovereign note fell to 2.17% on Friday, below the 2.18% point it reached on July 1, according to data compiled by Bloomberg going back to 2002. Recent interest rate cuts by the People’s Bank of China to boost a flailing economy have undermined its efforts to guide longer-dated bond yields higher.