China’s Sovereign Bonds Rally as Stocks Slump Spurs Haven Demand
This article is for subscribers only.
China’s sovereign bonds rallied as a selloff in local shares prompted investors to seek the safety of sovereign debt.
The yield on government notes due May 2016 fell 10 basis points to 2.25 percent as of 5:04 p.m. in Shanghai, the most since May 27, according to prices from the National Interbank Funding Center. That on securities due April 2025 dropped two basis points to 3.47 percent, the lowest since July 9. The benchmark Shanghai Composite Index of stocks sank the most since February 2007.