By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: China successfully stops bond bulls in their tracks, at least for the time being – News
Share
Notification Show More
Latest News
Ferrero’s Social Responsibility Project Kinder Joy of moving Beats Traditional PE Curriculum, Tapping into the Cognitive Functions, Motor Coordination and Life Skills of Students
Lifestyle
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech
Beat the Heat This Summer with a Chill Out on Dubai Marina
World
Historic Italian City of Assisi to Host International Exhibition “Jordan: Dawn of Christianity”
World
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > China successfully stops bond bulls in their tracks, at least for the time being – News
Business

China successfully stops bond bulls in their tracks, at least for the time being – News

News Room
Last updated: 2024/08/18 at 8:46 PM
News Room
Share
3 Min Read
SHARE

The People’s Bank of China is seeing a slowdown in the frenzied bond rally in the country as prices fall and turnover decreases due to increased intervention by Beijing to prevent yields from dropping. Despite economic indicators pointing to a slowing economy in need of policy easing and bond buying, ten-year treasury futures are heading for a second consecutive weekly drop, the largest in almost a year. Exchange-traded bond funds in China experienced high outflows while state banks were selling heavily and warnings against reckless buying were being reported.

The market is bracing for a clash with authorities as more bond sales are expected in the upcoming weeks and months. The Chief Investment Officer at JPMorgan Asset Management acknowledged the new round of actions by the People’s Bank of China and has been reducing his long position in Chinese government bonds in response to their efforts to cool the rally. Long-dated bonds have been the focus as risks of an asset bubble are identified, leading to restrictions on bond funds and increased scrutiny on brokers and banks. Yields on ten-year and 30-year bonds have risen in response to falling prices.

The number of wealth management products whose market value dropped below the net asset value has increased significantly, indicating a market deterioration. Trading volume for China’s current 10-year note has significantly decreased compared to the previous week, showing signs of weakness in the market. Analysts express concerns about the impact of the authorities’ measures on market participants’ willingness to trade, potentially undercutting the market’s financing and investing purpose.

Despite the ongoing bond rally, authorities in China are committed to maintaining a supportive monetary policy and policy stability. The volatility in the bond market stems from a number of factors, including the economic slowdown, low bank lending rates, and a significant influx of idle bank capital into bonds. Concerns about a market bubble and a lack of productive use of capital prompt authorities to intervene and discourage excessive bond buying.

The battle between market participants and authorities in China is intensifying as the forces driving the bond rally show no signs of weakening. Bond supply remains a wildcard, as China has only sold a fraction of the bonds planned for the year. Foreign investors, attracted by lucrative swap rates, may take the opportunity to book profits and close positions, adding to the market uncertainty. In preparation for potential volatility, banks are looking to seize trading opportunities and adjust their strategies accordingly.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room August 18, 2024
Share this Article
Facebook Twitter Copy Link Print
Previous Article How to apply for a social care professional license in Sharjah, Dubai, Abu Dhabi – UAE
Next Article Verona shocks Napoli with 3-0 victory in Serie A season opener – News
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

Ferrero’s Social Responsibility Project Kinder Joy of moving Beats Traditional PE Curriculum, Tapping into the Cognitive Functions, Motor Coordination and Life Skills of Students
Lifestyle July 14, 2025
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports July 6, 2025
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech July 1, 2025
Beat the Heat This Summer with a Chill Out on Dubai Marina
World July 1, 2025

You Might also Like

Tech

Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World

July 1, 2025
Crypto

Bitget Celebrates Bitcoin Pizza Day by Distributing Over 5000 Pizzas in Over 20 Cities Worldwide

May 22, 2025
BusinessCrypto

Bitget Protection Fund Maintains Strength with $561 Million Average Value in April 2025

May 20, 2025
BusinessGulfUAE

Muhammad Umair Saeed: The Billionaire Tech Architect Powering AI, Drones, Blockchain & Cybersecurity from Dubai to the World

May 10, 2025
BusinessCrypto

RWA project FEXSE tokenises $600,000 Jacob & Co. luxury watch on the blockchain

April 14, 2025
Business

NTT DATA Business Solutions Expands Presence in UAE with Stronger Regional Leadership

March 28, 2025

Sustainable Moving Services: How Dubai’s Moving Companies Are Going Green

February 20, 2025
Tech

CNTXT and Oracle Strengthen AI Collaboration to Drive Innovation

February 14, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?