Thursday, June 7, 2007

China's Bonds Fall on Speculation Central Bank Will Raise Interest Rates

(Bloomberg) -- China's government bonds fell, with
the two-year yields rising the most in three months, on
speculation the central bank will increase interest rates to slow
accelerating inflation. The yuan dropped.

The People's Bank of China is ``closely'' monitoring gains
in pork and egg prices and will study economic data for May
before deciding on any changes in borrowing costs, central bank
Governor Zhou Xiaochuan told reporters during a financial
conference in Beijing on June 5.


Read more at Bloomberg Bonds News

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