China’s 10-year government bond yields have fallen to nearly 2%, the lowest in several decades, as markets anticipate more economic stimulus measures from the government.
PBOC Boosts Bank Funds by 800 Billion Yuan
The People’s Bank of China (PBOC) recently increased the funds available to banks by 800 billion yuan for November, a significant rise from the 500 billion yuan allocated in October.
This move aims to maintain sufficient money flow within the economy.
China Bond Yield Hits Record Low: Stimulus Expected
The central bank bought 200 billion yuan in government bonds to support its economic strategies against market cycles. PBOC Governor Pan Gongsheng hinted at likely reductions in the reserve requirement ratio (RRR) by up to 50 basis points and the reverse repo rate by 20 basis points before the end of the year.
With key meetings of China’s top political advisors and economic planners scheduled for mid-December, investors are keenly awaiting further announcements on these stimulus measures.