Rise in Chinese bond yields sparks concern


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.

ETFs: FXI, GXC, PGJ, FXP, YINN, MCHI, YANG, XPP, DSUM, YAO, CHXF, YXI, TCHI, FCA, CHLC

From other sites
Comments (1)
  • Mike Holt
    , contributor
    Comments (1869) | Send Message
     
    The focus of concern should be on the high levels of Chinese debt already outstanding and the questionable quality of this debt which explains why the CCP has been unsuccessfully attempting to rein in this debt. Whether higher bond rates will make if difficult to issue even more debt and possibly "slow" the economy is much less of a concern. In fact, I would call that scenario wishful thinking. Its time to wake up and smell the tea.
    26 Nov 2013, 07:44 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs