Bond market is signaling it expects an economic recovery, aided by the government's debt-funded stimulus package, reported by the Wall Street Journal. Analysts expect China's Ministry of Finance to issue record amounts of domestic debt this year to fund public-works programs. On 19 December, government officials informed selected bond-market participants, including bank underwriters, that the Ministry of Finance could issue as much as 1.6 trillion CNY (234.5 billion USD), in bonds this year, the report said. Bond yields have tumbled as the country's central bank cut interest rates five times in recent months and implemented other easing moves.
