- Chinese government bond yield spreads are still near multi-year highs despite the recent backup in US Treasury yield (which has now extended to some Asian markets).
- China came out of the pandemic much faster than its G7 counterparts and therefore, after initial 10bp and 20bp cuts in March and May, the PBoC kept monetary policy neutral for the rest of 2020, also anxious to prevent the credit boom accelerating.
- In contrast, the US Fed eased rates 175bp in 2020, the Bank of Canada 150bp, and the Bank of England 65bp.
For further details see:
Chinese Government Bonds - Yield Spreads Still Near Multi-Year Highs