Bond prices on China's interbank bond market are likely to increase Monday on investors' expectation of required reserve ratio (RRR) cut.
Traders noted that though the People's Bank of China, China's central bank, scaled up its reverse repos offering and pumped 110 billion yuan (17 billion U.S. dollars) into the market through medium-term lending facility (MLF) last week, investors still expected that the central bank might further lower its RRR in a bid to keep liquidity environment stable after yuan's sharp devaluation, which might add some boosts into the bond market.
On last Friday, ChinaBond New Composite Total Return Index, a broadly-based market sentiment indicator, added 0.045 percent to 163.9391 points.
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