China’s Credit Jitters Deepen a Selloff in Government Bonds
- Nation’s notes set for longest monthly losing slide since 2007
- Corporate bond defaults trigger concern on state-owned firms
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The credit default shock waves rippling through China are hurting demand for sovereign bonds, with market watchers seeing the slide lasting the rest of 2020.
China’s 10-year government notes are set to drop for a seventh month in November, on track for the longest retreat since 2007. The decline has pushed the benchmark yield to 3.32%, set for the highest since May 2019. A technical indicator suggests the bonds are facing the worst selling pressure in a year.