China's Bond Yields Spike to 3-Year High as Debt Selloff Spreads
- Notes track slump in Treasuries, U.K. gilts on growth outlook
- Chinese sentiment already negative amid deleveraging campaign
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China’s sovereign bonds tumbled, pushing 10-year yields to a three-year high, as a debt slump that started in the U.S. and the U.K. spread to the world’s second-largest economy.
Yields on notes due in a decade climbed five basis points to 3.98 percent in Shanghai, the highest since October 2014. The gain follows a 32 basis-point surge over the past seven weeks. Five-year Chinese bond yields also jumped, crossing 4 percent for the first time in more than three years.