China 30-Year Treasury Futures Hit 2024 High Before Slipping Below 118

The pullback below 118 after a fresh 2024 high suggests the rally is running into positioning fatigue rather than a shift in fundamentals, since the underlying driver — abundant interbank liquidity and heavier central bank medium- and long-term injections — remains intact. That matters for duration-sensitive RWA and fixed-income products, where the cost of carry and collateral valuations track these yields. The open question is whether the liquidity backdrop keeps compressing long-end yields or whether the failed breakout signals a near-term ceiling.