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(From AFX Europe (Focus))
BEIJING (XFN-ASIA) - China's market interest rates, which include short-term money market rates, one-year People's Bank of China (PBoC) bill rates and 10-year treasury bond yields, will gradually climb in the medium-term, said Jonathan Anderson, Asia chief economist with UBS.
Anderson said these rates, kept artificially low now due to various distortions, will rise due to greater corporate bond issuance and higher bank deposit rates.
"(With) the opening of China's corporate bond market ... companies will be increasingly able to come directly to the financial markets to borrow, helping to push yields up toward current …