China's bond market rallies to best month since October as liquidity surges.

China's bond market rallies to best month since October as liquidity surges. The 10-year sovereign yield fell below 1.75%, dropping seven basis points this month despite upcoming record debt issuance. The People's Bank of China maintains loose cash conditions to support economic growth, with overnight repo volumes hitting record highs of 8.5 trillion yuan. Analysts expect further monetary easing could push yields toward 1.6% this year. The rally underscores Chinese debt's appeal as a global safe-haven asset, particularly given geopolitical tensions elsewhere. Market observers note the 1.75% level represents a key threshold in the trading range previously indicated by PBOC leadership, with ample liquidity offsetting supply concerns as the government prepares its ultra-long bond offerings.