New COVID cases weigh on bonds

Investors stay on sidelines as they watch pandemic situation unfold

New COVID cases weigh on bonds

(ATF) A recent rise in Chinese corporate bond returns halted Thursday, matching slackness in local stock markets, amid news of new COVID outbreaks.

The ATF China Bond 50 Index as little changed at 106.70 after posting moderate gains in the previous three days. The pattern was repeated across the Corporate, Enterprise and Local Government sub-indexes, with only Financials showing a gain, of 0.2%.

China reported 24 new COVID cases on April 7, up from 12 cases a day earlier, the country's national health authority said Thursday.

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The National Health Commission, in a statement, said 11 of the new cases were local infections reported in southwestern Yunnan province. Ruili city in Yunnan, which borders Myanmar, has rolled out a series of COVID-19 countermeasures including home quarantine and vaccination efforts after a new cluster emerged there last week.

The number of new asymptomatic cases, which China does not classify as confirmed cases, fell to six from eight cases a day earlier.

The total number of confirmed COVID-19 cases in mainland China now stands at 90,365, while the death toll remained unchanged at 4,636.

The COVID pandemic, which began in China, pummelled the nation’s economy, inflicting the first quarterly GDP contraction in generations.

Since then China’s economy, and its credit markets, have recovered strongly as it appeared authorities had eradicated the scourge.

  • Additional reporting by Reuters  

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