The People's Bank of China: China's long-term government bond yields are generally effective in reflecting market expectations and macroeconomics

On May 10, the central bank released the first-quarter monetary policy implementation report, which stated that the yield of long-term government bonds is an important part of the yield curve of government bonds as the pricing benchmark of financial marekt, and the market has been paying high attention. The yield of long-term government bonds mainly reflects the expectations of long-term economic growth and inflation, but also is disturbed by factors such as the lack of safe assets. China's long-term government bond yields are generally effective in reflecting market expectations and macroeconomics. In recent years, monetary policy has been highly countercyclical, creating a good liquidity environment for the smooth operation of the bond market. This year, the active fiscal policy is relatively strong, and the scale of government bonds planned to be issued is not small. The pace of issuance will be accelerated. The supply and demand of the bond market is expected to further balance, and the yield of long-term government bonds will better match the positive trend of the future economy.