China's 30-year government bond yields slid to their lowest level in over a month as traders bet Beijing will shorten the maturity of its special-debt issuance. Yields dropped as much as 3 basis points to 2.28% on Monday, with futures advancing 0.5% - the most in about three weeks.

Analysts at Standard Chartered Bank said the odds are high for a reduction in duration given elevated yield levels and wide spreads between 10- and 30-year bonds. The repricing comes ahead of China's annual 1.3 trillion yuan ($190 billion) special bonds program, which funds major strategic projects and consumer spending.

The potential move to shorten issuance maturities could ease investor concerns about crowded supply in long-dated bonds, which had pushed yields to 17-month highs in March. Over the past two years, special debt was issued only in 20-, 30- and 50-year tenors, according to Bloomberg data. The market is now focusing on the possible introduction of a 15-year tenor.