China one year bond yield drops to 1%, first time since 2009.
Earlier today we had the 1- and 5-year rates set unchanged:
PBOC sets 1 year Loan Prime Rate (LPR) at 3.1% and 5-year at 3.6%, both unchanged
No reduction despite ongoing easing pressure. The People’s Bank of China seems very concerned that further rate cuts would prompt further yuan weakness and capital flight.
This article was written by Eamonn Sheridan at www.forexlive.com.
