Business & Finance
China Policy Bank Bonds Suffer Selloff as Tax Worries Hit Market
Key Points
China Policy Bank Bonds Suffer Selloff as Tax Worries Hit Market Concern over a potential tax on Chinese government bonds is spilling over to major policy banks, pushing up their borrowing costs. The yield of China Development Bank’s 10-year notes closed three basis points higher on Thursday, matching this year’s largest daily increase, according to Chinabond data. The move widened their yield spread over similar-tenor government bonds to about nine basis points, the most in over six months.
China Policy Bank Bonds Suffer Selloff as Tax Worries Hit Market
Concern over a potential tax on Chinese government bonds is spilling over to major policy banks, pushing up their borrowing costs.
The yield of China Development Bank’s 10-year notes closed three basis points higher on Thursday, matching this year’s largest daily increase, according to Chinabond data. The move widened their yield spread over similar-tenor government bonds to about nine basis points, the most in over six months. Yields on debt from China’s two other policy lenders, Export-Import Bank of China and Agricultural Development Bank of China, also rose.