(Yicai Global) Oct. 30 -- Stronger-than-expected economic performance, intensified liquidity concerns and growing regulatory concerns have pushed China's treasury bond yields to a three-year high.

The yield for 10-year treasury bonds hit 3.9 percent this morning, up from 3.835 percent on Oct. 27, while five-year bonds leapt to 3.92 percent from 3.83 percent. Ten-year treasury bond futures at China Financial Futures Exchanged plunged 0.5 percent.

More and more people are accepting that economic performance has not been as poor as expected, said Long Hongliang, a senior trader at Bank of Hebei Co. Paired with concerns that regulations may become tougher, this has had a big impact on the bond market, with market selling hampering performance, he added.

Loose money has seen bond yields continue to rise since China's National Day Holiday at the start of this month, hitting 3.7 percent on Oct. 16 and rising to 3.8 percent on Oct. 26.

Market sentiment is currently very fragile, China International Capital Corp. Ltd. [HKG:3908] said in a report yesterday. Fears of an economic slowdown are weakening and concerns about inflation are on the rise, leading to worries about tight liquidity. This, coupled with expectations of stricter financial regulations and US bond yields hitting new highs, has seen domestic bond rates climb, the report added.