HONG KONG -- The declining yield on China's 10-year government bond is weighing on the country's insurers, who rely heavily on domestic sovereign bond markets due to their limited ability to diversify into high-yield markets such as the U.S.
The drop in long-term treasury bond yields reflects investors' expectations for continued deflationary pressure to cast a shadow on China's economic outlook despite the government's recent sweeping stimulus measures aimed at boosting growth.
