
Analysts project yields will fall further amid easing supply pressures and recapitalisation plans.
Citi Research turned bullish on China's 30-year government bonds, projecting falling yields due to easing supply pressures and a major financial institution recapitalisation plan.
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Citi Research updated its outlook on Chinese debt instruments heading into the fourth quarter.
Citi Research has turned bullish on China’s 30-year government bonds, projecting that yields will fall further even as US Treasury yields climb.
The analysts attributed the outlook to easing supply pressures and improved market dynamics for China’s ultra-long government bonds heading into the fourth quarter.
“China’s recently announced 360-billion-yuan [US$53.7 billion] recapitalisation plan for some major financial institutions may boost duration demand, especially for the ultra-long end,” wrote Rohit Garg, Singapore-based head of EM Asia Rates and FX Strategy at Citi, in the report.

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