Coupon payments weigh on China bonds

China bonds declined on Monday, with the benchmark ATF China Bond 50 Index sliding for the first time in a week, dragged down by coupon payments on two securities.

The ATF China Bond 50 Index fell 0.06%.

The ATF CB50 fell 0.06%. Among the other ALLINDEX gauges, Local Governments slid 0.19%, the steepest decline since June 18; Financials fell 0.03%; Enterprises gained 0.06%; and, Corporates climbed 0.04%.

The ALLINDEX Corporates Index rose 0.04%.

The losses extended a decline on returns in Chinese corporate debt since the height of the coronavirus pandemic in March. Investors have been switching into government bonds amid increased debt sales from the People’s Bank of China to counter the pandemic-led economic downturn and to rebuild shattered industries. 

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