Chinese bond yields soared and authorities halted trading in some futures contracts for the first time on Thursday, The Wall Street Journal reports, as a global bond-market selloff worsened a day after the Federal Reserve signaled a quicker pace of interest-rate increases next year. The Chinese 10-year government bond yield, which rises when prices fall, hit a 16-month high of 3.4%, extending selling that began in late November and accelerated this week amid slowing growth, outflows of capital and concerns over asset bubbles. In early trading, the 10-year and five-year government-bond futures recorded their biggest ever drops in price, falling by 2% and 1.2%, respectively, leading exchange authorities to suspend the securities. Trading resumed only after China’s central bank injected about $22 billion into the short-term money market.
Categories