China bonds rallied Monday with the 10-year yield dropping below the key psychological level of 2% to hit a multi-decade low, amid expectations that Beijing could expand its stimulus measures to shore up the economy.
Yields on China's 10-year government bond, which move inversely to prices, fell to 1.9636% on Monday, data from LSEG showed, marking its lowest level in 22 years.
30-year bond yields dropped to 2.164%.
"The resistance for further downside [on bond yields] may increase due to higher government bond issuance and upcoming major meetings," OCBC's Xie noted.
China's 10-year yield remains far lower than the U.S. 10-year Treasury yield of over 4%.
Persons:
Tommy Xie, Edmund Goh, Goh, Pan Gongsheng, OCBC's Xie, Xie, Eugene Hsiao
Organizations:
OCBC Bank, People's Bank of China, CNBC, Communist Party, Macquarie
Locations:
China, Beijing, LSEG, Asia, U.S