0218 GMT - The Chinese government bond yield curve is likely flattening amid prolonged easing bias, as DBS Group Research expected, economist Samuel Tse says in commentary. China's persistently weak inflation has spurred the PBOC to remain in an easing stance, the economist says. DBS expects 50 bps worth of cuts in the 1-year loan prime rate this year, in tandem with balance-sheet expansion. However, 2-year and 10-year Chinese government bond yields have recently dropped to record lows, and near-term downside risk could be limited, the economist adds. The 10-year yield is up 2 bps at 1.678%.xx(ronnie.harui@wsj.com)

(END) Dow Jones Newswires

January 09, 2025 21:18 ET (02:18 GMT)

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