Chinese government bond yields have climbed to their highest since November as investors shift into equities on expectations that the world’s second-largest economy can move past its deflationary pressures, reports the Financial Times. Yields on 30-year Chinese government bonds rose 0.08 percentage points on Wednesday to 2.21%.
Ten-year yields rose 0.03 percentage points to 1.82%, their highest level since just before US President Donald Trump’s “liberation day” tariff announcement in April, which prompted a move out of risk assets in China. Bond prices fall when yields rise.
The yield moves come despite inflation data on Wednesday showing consumer prices fell in August. Some analysts pointed to the details within the figures as signs that China’s campaign against deflation was starting to gain traction.