Chinese Bond Markets Are Going Crazy!

Chinese Bond Markets Are Going Crazy! By Hardika Singh

Demand in China has risen for investments seen as a better bet than stocks or property. Meanwhile, Surveys point to a fresh acceleration in the U.S., even as growth in the eurozone strengthens. And a jailed ex-crypto executive sought to stay in New York while helping to prepare his appeal. Read on for this news and more.

Note to readers: The Central Banking newsletter won't be published Monday in observance of Memorial Day. We will be back on Tuesday.

Top News China's New Sovereign Bond Prices Go Haywire Amid Search for Safe Assets

The price of China's new 30-year sovereign bonds has whipsawed since their recent debut , with trading data suggesting small investors are piling into a bet seen as safer than the country's property and equities markets.

The bonds, sold by China's Ministry of Finance, were released to institutional investors late last week and began trading on the Shanghai and Shenzhen stock exchanges on Wednesday, making them available to retail investors.

U.S. Economy Boost for World Economy as U.S., Eurozone Accelerate in Tandem

Global economic growth is becoming more broad based , with surveys indicating that business activity in both the U.S. and the eurozone gained momentum in May.

The eurozone economy contracted in the second half of 2023 following a surge in energy and food prices triggered by Russia's invasion of Ukraine, and the subsequent rise in interest rates intended to tame that inflation.

Financial Regulation FTX's Sam Bankman-Fried Being Transferred to New Prison

Federal officials began the process of transferring Sam Bankman-Fried to a new prison early Wednesday, overriding his wish to stay in New York while helping to prepare his appeal, according to a spokesman for the jailed FTX founder.

SEC Approves ETFs for Ether

The Securities and Exchange Commission approved the first U.S. exchange-traded funds holding ether , the largest cryptocurrency behind bitcoin, in an about-face that surprised the crypto community.

Forward Guidance Friday (all times ET)

8:30 a.m.: U.S. durable goods for April

10 a.m.: University of Michigan consumer survey for May, final

Research U.S. Home Prices Hit Another Record High On Lower Inventory

The median home-sale price hit a record $387,600 during the four weeks ending May 19, up 4% from a year earlier, Redfin says. Weekly average mortgage rates dipped to 7.02% from a five-month high of 7.22% at the start of the month, bringing the median monthly housing payment to $2,854, roughly $20 shy of April's all-time high. Home prices keep rising despite declining sales because there aren't enough homes on the market. Redfin says: New listings are up about 8% year over year, but inventory remains lower than typical spring levels. Many homeowners are staying put because they would rather hold onto their relatively low mortgage rate than move up to a bigger and/or better home. - Chris Wack

Basis Points A decline in weekly jobless claims is seen as evidence that the U.S. economy remains robust, while the S&P Global Flash U.S. Composite PMI - which gauges activity in the manufacturing and services sectors - rose to 54.4 in May from 51.3 in April, its highest in over two years. The results come as the Federal Reserve attempts to dial down expectations surrounding rate cuts any time soon. - Kirk Maltais The rise in the European Central Bank's negotiated wage index to 4.7% in the first quarter of 2024, from 4.5% in the fourth quarter of 2023, won't prevent the central bank from cutting rates in June but it could slow the pace thereafter, says Paul Hollingsworth, chief Europe economist at BNP Paribas Markets 360 in a note. "It does little to derail a June rate cut," he says. - Emese Bartha Japan's consumer inflation grew at a slower pace in April , but remained above the Bank of Japan's 2% target amid growing expectations over additional interest-rate increases. - Megumi Fujikawa Confidence among U.K. consumers rose a little in May , with easing inflation and the expectation of falling Bank of England interest rates set to boost Britons' spending power. - Ed Frankl Executive Insights

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful.

Once perceived as hippies and tree-huggers, chief sustainability officers have seen their role evolve from a backroom marketing function to being key figures in a company's operations . More marketers are tapping into modern fears and discomforts, rather than selling consumers the perfect life. Technology is a growing target. Investors are using shareholder proposals to drag corporations into U.S. political and cultural fights, but legal challenges could allow big companies to shut them down . Private lenders are getting choosy in today's high-interest-rate environment about which businesses to rescue, abandoning a bet against a quick drop in rates. About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [[e-mail]].

This article is a text version of a Wall Street Journal newsletter published earlier today.

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05-24-24 0715ET