China bond market retreats as long-end yields climb, liquidity tightens ahead of quarter-end

On September 24, China's bond market extended its pullback while equities rebounded, with long-term government bond yields rising about 2 basis points. Government bond futures contracts ended lower across the curve, and interbank funding rates climbed as liquidity conditions tightened.

Analysts noted cautious sentiment in the bond market, with quarter-end and fee reform uncertainties adding to pressure, though oversold medium- to long-term bonds may present tactical opportunities. Government bond futures all closed lower. The most-traded contract of 30-year government bond futures fell 0.41%, the most-traded contract of 10-year government bond