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Jun 02, 2020 PRINT EDITION

SHANGHAI: Chinese 10-year treasury futures for December delivery, the most-traded contract, gained as much as 0.51 percent to 99.425 on Thursday afternoon.

The uptick in the benchmark government bond futures came after China's banking regulator was said to be moving to restrict lenders' investment in policy bank bonds, traders said.

Bonds issued by Chinese policy banks, previously exempt from supervision, have now been brought under regulators' management on interbank investment, sources told Reuters on Thursday morning, a move that was widely seen as an effort to prod lending to the broader economy.

"The move could affect commercial banks' allocation and affect their demand for the bonds," said a trader at a Chinese bank.

As of 0639 GMT, the 10-year treasury futures was up 0.33%.

Copyright Reuters, 2019