Latest news with #sovereignnotes
South China Morning Post
2 days ago
- Business
- South China Morning Post
China's stock market bull run is translating into a rout for bonds and ultra-long debt
A sell-off in China's bond market is accelerating, sending futures on ultra-long debt to a four-month low as a bull run in local stocks builds momentum. Futures on 30-year sovereign notes fell as much as 0.7 per cent on Thursday, extending this week's drop to 1.5 per cent at the low as a gauge of onshore equities reached its highest point since October. The moves are less dramatic in the cash bond market, with yields on the same maturity government paper up one basis point. The world's second-largest bond market has come under increased pressure in the past month, thanks to easing US-China trade tensions and optimism that efforts to curb overcapacity and excessive price wars will pull the economy out of deflation. Dwindling expectations for further monetary easing in the short term, as well as the imposition of a tax on certain bond investments, have also soured investor sentiment. Weighing on bonds is 'asset allocation rotation as equities have fared well lately and there may be a gradual recovery of some investor risk appetite,' said Lynn Song, Greater China chief economist at ING Bank. 'To support the bond market, we would need to see measures such as cuts to the benchmark rate.' While the traditional see-saw effect between stocks and bonds appears to be the driving force behind investors' decisions at the moment, how far the debt market sell-off can go may ultimately hinge on China's growth momentum. Official data released Wednesday showed a key measure of lending at Chinese banks contracted for the first time in two decades in July, with broad credit growth also slowing.
Bloomberg
2 days ago
- Business
- Bloomberg
China Bond Rout Deepens as Rally in Local Stocks Gathers Steam
A selloff in China's bond market is accelerating, sending futures on ultra-long debt to a four-month low as a bull run in local stocks builds momentum. Futures on 30-year sovereign notes fell as much as 0.7% Thursday, extending this week's drop to 1.5% at the low as a gauge of onshore equities reached its highest point since October. The moves are less dramatic in the cash bond market, with yields on the same maturity government paper up one basis point.
Bloomberg
22-07-2025
- Business
- Bloomberg
A Top Indian Pension Fund Manager Is Betting on 30-Year Bonds
A top private pension fund in India is doubling down on 30-year government bonds after a recent selloff. The yield gap between India's 30- and 10-year sovereign notes has widened to levels last seen four years ago, after the central bank in June signaled that it may not cut rates further soon. This makes long-tenor bonds attractive for pension funds, which typically seek to lock in higher returns for longer periods.
Bloomberg
02-07-2025
- Business
- Bloomberg
Japan's Bond Market Faces First 30-Year Sale Since Issuance Cut
Japan's auction of 30-year sovereign notes Thursday is shaping up as a barometer of policymakers' success in quelling debt-market turmoil that pushed yields on the nation's super-long bonds to record highs in May. Yields have stepped down from their peaks, helped by the Ministry of Finance adjusting issuance to sell fewer super-long bonds, and by the Bank of Japan slowing its pullback from debt purchases. Recent sales of shorter-maturity securities have also gone smoothly.
Bloomberg
28-05-2025
- Business
- Bloomberg
Why Investors Are Worried About Japan's Bond Market
Global bond jitters are spilling into Japan, a corner of the market that for decades experienced barely any volatility — and it's worrying investors already spooked by frictions in US Treasuries. Japan's central bank — the Bank of Japan — seen as a 'whale' of the domestic bond market because it owns more than half the nation's sovereign notes, has been gradually trimming its balance sheet and scaling back its bond purchases. But the question is: Who else is interested in buying?
