China government bonds are likely to rise after May economic data released over weekend showed the world's No. 2 economy remained weak in the last month, though inflationary pressures eased to a 23-month low. "The data could explain why Beijing decided to cut interest rates last week, and I expected the central bank will lower banks' reserve requirement ratio by another 50 bps as early as July to bolster the economy," says a Beijing-based trader with a local brokerage. The Shanghai Stock Exchange government bond index is likely to stay in a 133.42-133.50 band vs 133.42 at Friday's close.
Find us on Google+
No comments:
Post a Comment