China’s benchmark 10-year treasury futures surged as much as 0.36% to hit a high of 102.24 on expectation that the Chinese government will introduce more monetary easing measures to support the economic recovery.
The 5-year treasury futures is jumping 0.26% and the 2-year treasury futures is up 0.1%.
The yield on China’s 10-year government bond declines further to 2.66% on Tuesday, marking a new low since November 2022
The People’s Bank of China on Tuesday cut a policy rate – the interest rate on the 7-day reverse repurchase agreement – by 10 basis points, increasing market expectation of a reduction in the benchmark lending rate Loan Prime Rate (LPR) later this month.
