China’s bonds plunge after PBOC injects 14-day reverse repos for 1st time in over 6 months

As Reuters reports, the Chinese sovereign bonds slumped Wednesday after the PBOC injected 50 billion yuan via 14-Day Reverse Repos into the money market for the first time over six months.

The yield on the benchmark 10-year bonds increased 2-1/2 bps to 2.779%, the super-long 30-year bond yield jumped 2-1/2 bps to 3.315% and that on the short-term 3-year bonds climbed 1-1/2 bps to 2.427% over the last hour.

Meanwhile, the central bank set the USD/CNY reference rate at 6.6420, 0.25% stronger than 6.6586 yesterday’s close.