Chinese government-bond yields have continued to ease after hitting a nine-year high last Wednesday, when the rate on 10-year bonds reached 4.72%.
Today, the yield is -5 bps at 4.66%.
The spike in yields has come as the government tightens monetary policy in order to try to rein in soaring lending. The trend has led to increased borrowing costs in the wider economy and made it more difficult to tap the bond markets.
That has led to fears that China's economic rebound could be at risk.
"If borrowing costs don't fall in time, whether the real economy could bear the burden is a big question," says Nomura economist Wendy Chen.