Recovery chills demand for 10-year government bonds

China's 10-year government bonds fell as signs of a recovery in the world's second-largest economy damped demand for the safety of sovereign debt.

Industrial output and retail sales rose faster than economists estimated, official data showed on Sunday. The People's Bank of China offered 11 billion yuan ($1.8 billion) of seven-day reverse-repurchase agreements at a yield of 3.35 percent, according to a trader at a primary dealer required to bid at the auctions.

The central bank also issued 70 billion yuan of 28-day contracts at 3.6 percent, the trader said.

China Daily - Agencies