China long — dated bond yields hit 15 — month low as PBOC keeps cash flowing

SHANGHAI, Oct 15 (Reuters) — China's long-dated bond yields dropped to the lowest in 15 months on Thursday as persistent central bank cash injections pushed down borrowing costs, with traders awaiting a key financial forum next week for clues on the monetary policy path. China's interbank market stayed flush this week, with the average rate of overnight repos near a five-month low of around 1.25%, broadly in line with the reported borrowing cost of the central bank's overnight reverse repo operations. The abundant liquidity has helped push long-dated yields lower. The 10-year government bond yield dropped to 1.64%, its lowest since July 2025, while the 30-year yield fell to 2.05%. Prices rise when yields fall. Despite the absence of any maturing reverse repos since Tuesday, the People's Bank of China (PBOC) kept injecting liquidity via the daily seven-day operations. Separately, its outright reverse repo operations delivered a net 400 billion yuan ($59.77 billion) cash injection this month through three- and six-month tenors. The market has started to price in monetary easing ahead of the Financial Street Forum next week, analysts at Industrial Securities said. They said expectatio