Yields on short-term debt issued by Chinese banks have fallen to a record low following a change in the People’s Bank of China’s policy framework. The central bank has shifted to using the overnight repo rate as its primary policy anchor, a move markets have interpreted as de facto easing.
Yields on one-year negotiable certificates of deposit (NCDs) issued by China’s top-rated lenders dropped to 1.39% on Wednesday, according to Bloomberg data dating back to October 2015.
Sources: Bloomberg Markets.