Posted 1/5/2024, 12:00:00 AM
Traders Bet on More China Rate Cuts as Economy Struggles
- Traders betting on further PBOC monetary easing in China this year as economy struggles
- Falling Chinese bond yields and interbank lending rates indicate expectations of rate cuts
- Economists predict up to 20 basis points of PBOC rate cuts and 50 bps of RRR cuts in 2024
- Surging Chinese bond trading volume signals intensified stimulus expectations
- Weaker yuan and dollar provide room for PBOC to focus more on growth rather than currency stability