0230 GMT - China's short-dated government bonds have attracted strong demand, says Samuel Tse, economist at DBS Group Research, in commentary, noting a recent fall in short-end yields following rate cuts in China earlier this week. The PBOC may further inject liquidity into the banking system, thereby countering weak money demand and supply, which could put further downward pressure on short-end yields, Tse says. Meanwhile, long-end yields will likely stabilize, given authorities' efforts such as the PBOC's long-end CGB borrowing and sales, Tse says. DBS maintains its core strategy of yield-curve steepening for China's government bonds. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
July 24, 2024 22:30 ET (02:30 GMT)
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