Bonds gauge ends strong week on subdued note

Further PBoC cuts to RRRs suppress returns on smaller banks  

by Christian Kronseder
Bond gauge ends strong week on subdued note
The AllIndex CBM50 Index fell 0.01% on Friday to 106.64.

(ATF) – The AllIndex CBM50 Index fell 0.01% on Friday to 106.64, paring gains this week to 0.11%.

The People’s Bank of China (PBoC) announced a 100bp cut in the reserve requirement ratio (RRR) for smaller banks, which will release 400 billion yuan ($58bn) into the system.

This saw a drop of 1.39%,3.48% and 5.85% in the yields on bonds from China Minsheng Banking, Chongqing Rural Commercial Bank and China Huarong Asset Management, respectively.

  • The ATF ALLINDEX Corporate Index fell 0.01%.
  • The ATF ALLINDEX Enterprise Index climbed 0.08%.
  • The ATF ALLINDEX Financial Index climbed 0.1%.
  • The ATF ALLINDEX Local Government Index fell 0.01%.

ATF ALLINDEX CBM50 Bond Index: A 50-constituent index, updated daily and selected from across the entire Chinese onshore bond market, that provides a benchmark measure of the Chinese onshore fixed income market. The CBM50 is taken from the ATF ALLINDEX Chinese Bond Market Index that tracks the price movements of Chinese CNY-denominated onshore bonds across the Corporate, Enterprise, Financial and Local Governments sectors.