China Govt Bonds Up As PBOC May Keep Money Market Rates Low

        0727 GMT [Dow Jones] China government bond prices higher as the central bank is expected to keep money market rates at low levels. The five-year government bond yield is down 2 basis points at 4.09%, while the seven-year government bond yield is 1 bp lower at 4.23%. "The central bank is expected to guide down the yield of the repos it offers in weekly open-market operations," says Deng Haiqing, an analyst with Citic Securities, in a report. The central bank has been offering 28-day repos at 4.0% since March, which serves as a benchmark for funding rates. The one-month repo rate is at 3.81% vs. 3.92% Tuesday. (wynne.wang@dowjones.com)
        (END) Dow Jones Newswires

        May 07, 2014 03:27 ET (07:27 GMT)