Bond Yields Hit 11-Month Low on Yuan Gain, Europe: China Credit |
| BusinessWeek - Oct 11, 2011 |
China’s government bond yields are trading at an 11-month low, signaling concern Europe’s sovereign debt crisis is worsening and a stronger yuan will further slow the world’s second-largest economy.
The yields on 10-year bonds dropped 27 basis points in the past month to 3.78 percent, the lowest since November 2010, as those for similar-maturity debt in the U.S., Russia and India climbed. Sovereign assets are being favored over corporate securities, with investors demanding a record 236 basis points more to hold Chinese company debt over government notes.
Wing Kwai Trading Co., which makes sandals targeted at the U.S. market, and J-Star Manufacturing Co., a glassware maker, say a combination of cooling global demand, rising wage costs and the yuan’s 3.6 percent advance in 2011 are hurting orders. A report due tomorrow will probably show gains in overseas sales slowed, while data due on Oct. 18 may indicate the weakest economic growth since the third quarter of 2009.
Read Full Article from BusinessWeek
- Posted: 2011-10-11 15:13:48
| More Stock Investor Place Top Stories |
 |
|
|
|
| Stock Investor Place Top Stories Archive |
|
|
|
