Chinese sovereign bonds sag ahead of OPEC gathering later in the day

The Chinese sovereign bonds slumped Wednesday as investors await the OPEC ministerial decisions, in which oil producing countries are expected to strike an agreement on output cut.

The yield on the benchmark 10-year bonds, which moves inversely to its price, rose 4 basis points to 2.94 percent, the long-term 30-year bond yield climbed 3 basis points to 3.33 percent and the yield on the short-term 2-year bonds bounced 3 basis points to 2.50 percent.

Crude oil prices recovered ahead of OPEC ministerial gathering in Vienna today. The International benchmark Brent futures rose 1.92 percent to $48.15 and West Texas Intermediate (WTI) jumped 0.77 percent to $45.58 by 07:00 GMT.

The Organization of the Petroleum Exporting Countries (OPEC) is meeting officially in Vienna later in the day to discuss a planned production cut in an effort to curb overproduction that has dogged markets and more than halved prices since 2014.

There remains disagreement among OPEC-members over which producers should cut by how much, and a plan for non-OPEC oil giant Russia to participate has so far also failed.

Meanwhile, People's Bank of China sets the USD/CNY reference rate at 6.8865, stronger than 6.8889 yesterday. The China's blue-chip CSI300 index fell 0.73 percent to 3,538 points and the Shanghai Composite Index dipped 1 percent to 3,250.03 points.