China long-dated bond yields hit 15-month low as PBOC keeps cash flowing
TLT•China’s 10-year government bond yield fell to 1.64%, its lowest since July 2025, while the 30-year yield dropped to 2.05% as central bank liquidity injections kept borrowing costs down. Traders are watching next week’s Financial Street Forum for clues on monetary policy.
1. Yields hit lows
China’s 10-year government bond yield fell to 1.64%, its lowest since July 2025, and the 30-year yield declined to 2.05%. The overnight repo rate was near a five-month low of around 1.25%, as the interbank market remained flush with cash.
2. Policy expectations
The People’s Bank of China continued daily seven-day operations and injected a net 400 billion yuan ($59.77 billion) through three- and six-month outright reverse repo operations this month. Expectations are divided ahead of the Financial Street Forum, which runs from October 19 to 22: some market participants see scope for reserve requirement or interest rate cuts, while others expect a de facto cut through a shift in the policy anchor. The seven-day reverse repo rate is currently 1.4%.
