China’s super-long government bonds climbed on Monday as traders speculated that
Beijing may shorten the maturity of its special debt issuance to reduce supply
pressure. China 30-year government bond yields fell as much as 3 basis points to
2.28%, near a one-month low, extending Friday’s decline. Futures on 30-year
bonds also rose sharply. Standard Chartered’s Becky Liu said the market sees a
high probability of reduced issuance duration given elevated yields and wide
curve spreads, with long-dated yields likely to trend lower as supply concerns
ease.
