China’s New 30-Year Bond Draws Highest Yield Since December

A weak auction sent a fresh warning signal in China’s bond market, following a recent selloff that resulted from stronger risk appetite and the resumption of a tax on certain debt investments.

The Ministry of Finance sold a new 30-year special sovereign note at an average yield of 2.15% on Friday, the highest since December, according to a trader who bid at the auction. At the same auction, it also sold 10-year paper at 1.83%, the highest since November, Bloomberg-compiled data show.