China's bond market remained within a narrow range on Friday, with long-end yields rising slightly and the momentum for short-end rate declines weakening, as the market continued to be influenced by oil prices and inflation expectations.
The 10-year government bond yield was reported at 1.8380%, up 0.2 basis points from the previous trading day; the 30-year government bond yield rose to 2.3045%, up 0.25 basis points. Meanwhile, the one-year interbank certificate of deposit rate stabilized after hitting a new low.
Traders indicated that international oil price fluctuations have become the dominant factor recently. Although Brent crude fell by about 1.6% on the day, the inflation expectations previously driven by its increase continued to exert pressure on the bond market.
On the policy front, China's March loan prime rate (LPR) remained unchanged for the 10th consecutive month, in line with market expectations, and had a limited impact on the market.
