SHANGHAI (Reuters) – Chinese treasury futures rose sharply on Wednesday afternoon after a former central bank official saw chances for interest rates cuts in the second half of the year.
The most-traded contract for 10-year Chinese government bond (CGB) futures, for September delivery closed 0.38% higher, while yields of the benchmark 10-year government bonds fell about 3 basis points.
Sheng Songcheng, former head of the statistics department at the People’s Bank of China (PBOC), said China should “reasonably and appropriately” lower interest rate levels in the second half of this year as pace of economic growth might ease to 5-6% against the backdrop of fading low base effect.
(Reporting by Winni Zhou and Andrew Galbraith; Editing by Andrew Heavens)
