Bonds Steady as Issuance Quickens
China's 30-year Treasury ETF (Bosera, 511130) edged up 0.27% to 108.67 yuan on August 10, 2026, as investors responded to accelerating ultra-long government bond issuance and the PBOC's stated commitment to a moderately loose monetary stance. Over the preceding week (through August 7), the ETF gained 0.52%, reflecting sustained demand for long-duration sovereign paper despite an active supply calendar.
Trading Liquidity
The ETF is one of China's most liquid fixed-income products. On August 7, intraday turnover reached 15.06 billion yuan with a turnover rate of 8.58%, underscoring deep secondary market participation. Over the trailing 12 months, the product averaged 30.57 billion yuan in daily turnover — a level of activity more typical of equity ETFs in most markets.
What Drives the Demand
Several forces are converging to support ultra-long bond demand. First, the PBOC's moderately loose stance keeps short-end rates low, which in turn anchors the cost of carry for longer-dated positions. Second, property sector deleveraging is redirecting institutional capital from real estate into high-quality fixed income. Third, the Ministry of Finance's accelerated ultra-long bond programme — 730 billion yuan placed on August 5 alone — provides a steady supply of benchmark paper that the market absorbs comfortably at 2.23%.
For investors, the 30-year yield at approximately 2.23% offers a risk-free return that compares favourably with declining deposit rates, making it an attractive allocation for yield-seeking institutions including insurance companies and pension funds with long liability durations.