SHANGHAI -- The yield on 10-year Chinese government bonds is hovering near record lows, with deflationary pressure and the protracted downturn in the property market fueling speculation of further monetary easing even as the central bank holds a key interest rate steady.
The People's Bank of China left the rate on its one-year medium-term lending facility at 2.5% on Monday. The MLF rate serves as a basis for calculating the loan prime rate, China's de facto policy rate.
