(Bloomberg) -- Metals extended last week’s gains after a report that Beijing is considering taking on more debt to reduce pressure on local governments.

Copper, zinc and aluminum all rose on the London Metal Exchange on Monday, moving in tandem with stock markets in Hong Kong and Shanghai. The metals have posted modest gains since mid-October, aided by signs China is willing to stimulate its economy and a more dovish outlook for US monetary policy.

In a report by state-owned paper the Securities Times, analysts said the central government will take on more debt to address the local funding constraints. Last week, Beijing announced an unusual $1 trillion central government bond issuance.

Meanwhile, shares and bonds of the country’s second largest developer China Vanke Co. rallied as investors positioned for a positive outcome from its meeting with financial institutions and the regulator. It’s a signal of broader confidence in Beijing’s desire to underpin its economic recovery.

Metals also saw a boost last week from a steep decline in benchmark US bond yields, which increases the appeal of non-interest bearing assets to investors. Jobs data on Friday pointed to a cooling of the American labor market, which spurred swaps traders to pull forward bets on rate cuts next year by a month.

Copper rose 0.9% to $8,246.50 a ton as of 12:00 p.m. in New York. Zinc climbed as much as 2.6% and aluminum rose 1.5%. 

--With assistance from Yvonne Yue Li.

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