China Bond Trading Collapses Amid PBOC Crackdown on Record Rally

China’s efforts to temper a historic bond rally have led to a severe drop in trading activity, complicating the situation for policymakers. Trading volume for the most active 10-year government bonds has plummeted, with average daily volumes on Wednesday and Thursday falling nearly 90% compared to early August figures.

This decline follows Beijing’s intensified measures against speculation in long-term bonds, including recent warnings about “illegal” trading practices.

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