Govt bond yields fall most in one month on stimulus bets

China's 10-year government bonds rose, with the yield falling the most in a month, on speculation the central bank will add more funds to the financial system to bolster economic growth.

The People's Bank of China will probably provide about 200 billion yuan ($32.7 billion) to some national and regional lenders, a government official familiar with the matter said on Friday, asking not to be identified because there hasn't been an official announcement. The monetary authority has already injected cash, giving 100 billion yuan to each of the nation's five biggest banks last month.

The yield on the notes due in September 2024 declined 10 basis points to 3.80 percent in morning trade on Monday in Shanghai, according to the National Interbank Funding Center. That was the biggest drop for a benchmark 10-year security since Sept 19, ChinaBond data show.