Source: Bloomberg

Author: shulun huang

On the one hand, it is a long -term special government debt to get out, and on the other hand, the short -term debt yield with lower interest rates in the Bittan currency market. Investors in the Chinese bond market have seen the value depression in the middle of the Treasury curve.

In the context of the past more than a month of long -term yield rebound and short -term downward trend, the five -year Treasury yield has decreased significantly.According to the valuation of China Bond, the difference between the five -year and 30 -year yield has gone to the largest since November last year.

ROHEET SHAH, the bond electronic trading platform Marketaxess, said that investors 'preferences for investors' bond yield curves are not much interesting from short -term to the middle, and their interest in remote end is not great.Through the platform trading Chinese bonds, it is mainly offshore investors, including asset management companies, hedge funds and overseas branches of Chinese banks.

China's weak economic growth, coupled with the lack of high -yield security assets in the market, the influx of funds has risen sharply in the past few months.The 10 -year and 30 -year national bond yields have fallen to a new low of at least more than ten years. Starting in early April, the yield of the first -year Treasury bonds has also been inverted from the bank overnight and seven -day pledge repurchase interest rates.

China's regulatory layer has spoken several times in the near future to warn the market to the market's long -term national bond yield that has decreased significantly.On May 11, the People's Bank of China again issued a post to emphasize that "the loss of the loss of the investment behavior that is too short -term may bring" and said that "the supply and demand of the bond market is expected to further balance.The first decline in reflecting the shrinking financing activities shows that the economy needs more stimulus policies.

At the same time, investors generally expect that government bond issuance, including ultra -long -term special government bonds, is about to speed up. Supply volume is expected to disturb the debt market and increase the cautious emotions of long debt allocation.

Nomura Asian interest rate strategyist Gao Luyan said in an interview with Bloomberg that long -term and ultra -long bonds are currently full, but the capital side is still loose. Investors have begun to adopt a long -term strategy.The middle part of the yield curve has attracted more funds.

Cary Yeung, the debt director of the Greater China of Switzerland asset management, pointed out that the policy trend of the real estate industry and the development of the stock market are closely concerned. If the risk appetite is maintained, it may also affect the demand for bond allocation.