Chinese Government Bond Yields Decline across the Board in 2021

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Chinese government bonds posted a strong performance in 2021, with yields declining for all maturities by the end of the year.

As of the end of 2021 the yields for Chinese governments bonds stood at 2.24% for the 1-year, 2.46% for the 3-year, 2.61% for the 5-year, 2.78% for the 7-year and 2.78% for the 10-year, according to data released by the People’s Bank of China (PBOC) on 30 January.

The 1-year yield marked a decline of 23 basis points compared to the end of 2020, while for the 3-year bond the decline was 36 basis points, for the 5-year it was 34 basis points, and for the 7-year and 10-year tenors it was 39 basis points and 36 basis points respectively.

The China Bond Government Bond Index (中债国债总指数) stood at 206.6 at the end of 20212, for an increase of 11.4 points compared to the end of 2020.

In December 2021 the interbank market monthly weighted average interest rate was 2.02%, for a rise of 72 basis points compared ot the same period in 2020.

The monthly weighted average interest rate of interbank pledged repos was 2.09%, for a rise of 73 basis points compared to the same period in 2020.