(Bloomberg) -- A rally in China’s ultra-long bonds is accelerating, in a sign that investors are ramping up wagers on fresh monetary easing to cement a nascent economic recovery.   

The yield on the country’s 30-year government notes has dropped 11 basis points in the past five sessions, the fastest pace for any such period since August 2022, Bloomberg-compiled data show. At 2.47%, the yield also is at its lowest in nearly two decades.

“It may be a convenient time for investors to push rates and yields lower as PBOC is firmly on the easing side while additional fiscal stimulus is yet to come,” said Frances Cheung, a strategist at Oversea-Chinese Banking Corp. “The market is still waiting for a turnaround in the growth outlook.”

The world’s second-largest economy is facing multiple challenges, ranging from an unprecedented housing crisis to persistent deflationary pressures and weak export demand. The People’s Bank of China refrained from cutting a key policy rate earlier this month, betraying official concerns about currency stability and a still-wide US-China interest rate gap.   

--With assistance from Shulun Huang.

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