China's 10-year bond yield climbs to three-week high

China's 10-year government bond yield climbed to nearly 2.16%, achieving its seventh consecutive session of gains and reaching a three-week high.

China's 10-year bond yield climbs to three-week high

On Monday, the People's Bank of China announced the initiation of monthly outright reverse operations starting October 28, 2024, to enhance liquidity in the banking system and expand the central bank's monetary policy toolkit. Last week, the central bank injected CNY 700 billion into financial institutions via a one-year medium-term lending facility (MLF), maintaining the interest rate at 2%.

Traders await China's legislative meeting for anticipated fiscal stimulus

This action followed a 30 basis point rate cut the previous month to stimulate economic growth amid ongoing challenges. Traders are now attentively monitoring the upcoming November 4–8 meeting of China’s top legislative body, where further fiscal stimulus measures are expected to be approved.