Government bonds of China are set for their biggest weekly advance in three months after injection in liquidity, Bloomberg reported.
- The yields on China’s 10-year sovereign bond fell by two basis points to 2.90%, bringing the week’s decline seven basis points.
- The latest decline comes as the central bank boosted short-term cash to 100 billion yuan on Friday, after boosting it to 50 billion yuan earlier in the week.
- The rally is mainly driven by bullishness that China’s central bank will join global peers in focusing on driving growth over curbing inflation.
- Global bonds continued to grow on Thursday after the Bank of England made a surprise move by keeping interest rates unchanged.
- Analysts believe the People’s Bank of China appears to have opted for the more flexible open-market operations instead of long-term liquidity infusion.
- The PBOC usually unloads 10 billion yuan of cash at the start of each month before increasing it toward the end of the month to meet demand.
And here is a golden tip
Want to profit from forex news? These forex robots earned the best historical yields to investors. Check out Best Forex Robots