China govt bond futures end sharply lower as policy easing hopes scaled back

SHANGHAI: Chinese 10-year Treasury futures for June delivery, the most-traded contract, closed down 0.44 percent on Wednesday as investors scaled back expectations for further policy easing measures amid signs the economy may be starting to stabilise.

China's central bank is likely to pause to assess economic conditions before making any further cuts in lenders' reserve requirements, though its easing policy bias remains unchanged, policy insiders told Reuters.

The central bank used a targeted lending scheme earlier on Wednesday to direct more funds to cash-strapped smaller companies, rather than more sweeping system-wide cash infusions used over the past year when there were worries of a sharper slowdown.

Treasury futures finished the trading session at 95.910.