China Bond Rout Deepens as Rally in Local Stocks Gathers Steam

A selloff in China’s bond market is accelerating, sending futures on ultra-long debt to a four-month low as a bull run in local stocks builds momentum.

Futures on 30-year sovereign notes fell as much as 0.7% Thursday, extending this week’s drop to 1.5% at the low as a gauge of onshore equities reached its highest point since October. The moves are less dramatic in the cash bond market, with yields on the same maturity government paper up one basis point.