Home » Central Bank: Long-term government bond yields mainly reflect expectations of long-term economic growth and inflation, but are also disturbed by other factors such as supply and demand.

Central Bank: Long-term government bond yields mainly reflect expectations of long-term economic growth and inflation, but are also disturbed by other factors such as supply and demand.

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Title: Long-term Government Bond Yields Decline Below 2.5%, People’s Bank of China Emphasizes Economic Recovery

In a recent report by Securities Times, it was revealed that long-term government bond yields have been on a decline, with the 30-year government bond yield dropping below 2.5%. This trend has raised concerns about the state of the economy and its recovery amidst the ongoing pandemic.

The Financial Times WeChat official account highlighted the importance of monitoring the changes in long-term yields, as mentioned by the People’s Bank of China during a press release of the Monetary Policy Committee meeting in the first quarter. The central bank emphasized the need to pay attention to the fluctuations in long-term bond yields during the economic recovery phase.

According to the person in charge of the relevant departments of the People’s Bank of China, long-term government bond yields are influenced by expectations of long-term economic growth and inflation, as well as other factors such as supply and demand. These rates play a crucial role in determining the pricing benchmark for financial markets.

Despite the decline in long-term government bond yields, the fundamentals of China’s long-term economic growth remain strong. The economy is characterized by a solid foundation, resilience, momentum, potential, and vitality, leading the central bank to be optimistic about its long-term prospects for growth.

However, short-term disturbances in long-term government bond yields may arise due to fluctuations in market supply and demand. Similar situations have been observed in developed economies, where bond yields deviated from economic growth expectations during periods of imbalanced market conditions.

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It is essential for investors to stay informed about these developments and make informed decisions regarding their investment strategies. While the information provided is for reference only and not intended as investment advice, staying updated on market trends and policy changes is crucial in navigating the financial landscape.

For real-time updates and insights into the stock market, readers are encouraged to download the official app of “Securities Times” or follow their WeChat official account for timely information on wealth opportunities and market trends.

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