Chinese bonds in long losing streak

Chinese sovereign bonds headed for the longest losing streak in three years, driving the yield curve to the widest in two months, as accelerating inflation and signs of an improving economy damped demand for the safety of government debt. The difference between the yields on one- and 10-year government notes, a measure known as the yield curve, rose to 67 basis points on Monday. According to Bloomberg, the gap has been forced apart by a surge in the longer-term yield, with a central bank effort to reduce leverage in the financial market and a global selloff adding to the pressure. China’s economy held ground last month following new measures to cool property markets in almost two dozen big cities, with industrial production matching September’s pace of 6.1%.