Unexpectedly, the post-90s generation also came to buy treasury bonds! The savings treasury bonds issued from April 10 to April 19 triggered a buying frenzy, and 45 billion yuan of savings treasury bonds were snapped up! From the perspective of interest rates, after multiple rounds of cuts, the interest rates of the three-year and five-year savings treasury bonds issued in this round did not exceed 2.5%.
The interest rate of savings bonds has been falling all the way, so why are investors still flocking to buy them, and the situation is "sold out in seconds"? Behind the difficulty in getting bonds, deposit interest rates are also falling. What are the reasons worth pondering? This issue of "Financial Information" will talk to you about it.
I think it’s explained by the highlighted sentence above. Chinese yields have only crashed below the falling support line. Inverting the question, the chart tells us flocking to treasuries started in March and it will accelerate into a climactic low.
The most interesting aspect of this is the timing. China is almost completely out of sync with the U.S. market: stocks and yields are plunging to lows when the U.S. market was recently flirting with highs.
Here is the above chart with SPX inverted, since late 2020 when this relationship started:
Well that’s not exactly true. It also emerged in 2019…
It tightened up around May.