China’s 10-yr bond yield falls to 2.47%

China’s 10-year government bond yield dropped to 2.47 per cent, hitting its lowest level in nearly 22 years on rate cut expectations are growing for further monetary easing amid a sluggish economic recovery, Bloomberg reported on Tuesday.

“Market expectation for a rate cut in February is gaining traction, especially after the PBOC’s surprising announcement to cut the RRR (reserve requirement ratio),” said the chief economist of Citic Securities Ming Ming.

The country’s economy is suffering from an extended housing slump and its stock market is under pressure from weak investor sentiment, leading to calls for policymakers to deploy more stimulus to boost growth.