China's 10-year yield broke below 2% to hit its lowest point on record on Monday, breaking a psychological barrier as a sputtering economy and bets on further rate cuts drive investors into the safety of bonds.

China’s 10-year government bond yield is a whisker away from hitting a historic low of 2%, as traders ramp up bets that the country’s central bank would ease monetary policy further to bolster a weak economy.

China bonds rallied Monday with the 10-year yield dropping below the key psychological level of 2% to hit a multi-decade low.