China Bond ETFs Draw Strong Inflows as Investors Seek Safety
The Bosera SSE 30-Year China Treasury Bond ETF has generated record inflows of around around 700 million yuan in each of the past two sessions, according to Bloomberg-compiled data, bringing its market capitalization to more than 9 billion yuan. The Pengyang ChinaBond 30-year Treasury Bond ETF, whose fund is double that size, attracted an inflow of 1.1 billion yuan on Monday, the most since March.
In another sign of appetite for sovereign debt, futures on 30-year Chinese government bonds jumped as much as 0.5% Tuesday, the most since May 30. The move followed China's release of a mixed set of economic data, including higher-than-expected gross domestic product in the second quarter, June retail sales that came below estimates, and a continued contraction in property investments.
The rising interest in long-term bonds in China is a contrast to the turmoil in developed markets, where ultra-long bonds have been rocked by rising fears that governments are spending more than they can afford.
The surge in demand for the ETFs underscores investors' broad bullishness for China's bond market even as equities rebound, amid bets that the People's Bank of China will support an economy facing potential export headwinds. At a Monday press briefing, central bank officials again vowed to maintain a moderately loose monetary policy and struck a measured tone on risks tied to banks' purchases of government bonds.
'We expect China's GDP will decelerate in the second half of the year and local rates will be falling more quickly with deflationary pressure likely to deepen,' said Becky Liu, head of China macro strategy at Standard Chartered Bank.
READ: Xi Urges 'New Model' for China Urban Plan in Rare Meeting
China's 10-year government bond yields could fall to 1.3% by year-end versus the current level of around 1.66%, Liu said, presuming the PBOC will keep liquidity loose and further roll out monetary easing measures.
This article was generated from an automated news agency feed without modifications to text.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
28 minutes ago
- Business Standard
Tesla's California EV sales fall for 7th straight quarter amid weak demand
A total of 41,138 Teslas were registered in the state last quarter, a 21 per cent drop year over year for the company's seventh straight quarterly decline Bloomberg The number of new Tesla Inc. vehicles registered in California fell once again as the company continued to lose ground in the largest US market for electric vehicles. A total of 41,138 Teslas were registered in the state last quarter, a 21 per cent drop year over year for the company's seventh straight quarterly decline, the California New Car Dealers Association said Tuesday. Tesla's tumble exceeded the 13 per cent dip in total zero-emission vehicle registrations in the state during the same period. The results highlight the magnitude of Tesla's ongoing sales slump. The carmaker's global deliveries tumbled 13 per cent in the second quarter, and analysts expect the EV maker to log a second straight annual decline this year, according to the average of estimates compiled by Bloomberg. The company is contending with an aging vehicle lineup, growing competition in the EV market and a consumer backlash to Chief Executive Officer Elon Musk's work with the Trump administration, even after the billionaire's public falling out with the president. California registrations of Tesla's top-selling Model Y declined 37 per cent in the the first half of the year. That came as it introduced a freshened version of the small SUV. The company had blamed weak first-quarter sales in part on factory shutdowns related to the update of the key model. The report, which cites data from Experian, comes a day before Tesla is expected to report second-quarter earnings, with investors looking for an update on key plans for Tesla's automotive business, including progress on more-affordable vehicles that could reignite consumer interest. Still, Tesla's top-selling Model Y and Model 3 vehicles continue to be two of the most popular models in the largest auto market in the US. The Model Y SUV was the top-selling vehicle of any kind, with more than 44,000 registered during the first six months, while the Model 3 was the No. 1-selling passenger car.
News18
an hour ago
- News18
Air India In Talks For $200 Million Bank Loan to Fund Boeing 777 Purchase: Report
AI Fleet Services IFSC Ltd. a GIFT City-registered subsidiary of Air India, is the borrower of the loan, said the Bloomberg report. The group, which operates two airline brands — the full-service carrier Air India and the low-cost alternative Air India Express — purchases and leases aircraft via this entity. The purchase of aircraft takes place as Air India struggles to expand its fleet due to supply chain constraints impacting deliveries and its ability to get planes from the open market. Air India is looking to purchase six Boeing 777 aircraft that it is currently operating, Bloomberg reported citing people familiar with the matter. According to the report, some of these planes are 11 to 13 years old and are primarily being used on India-US routes, as confirmed by data from flight tracking platform Flightradar24. The move is part of the airline's strategy to maintain a stable fleet while it awaits the delivery of new aircraft, Bloomberg noted. These purchases are aimed at bridging the gap until fresh deliveries begin. People aware of the discussions told Bloomberg that the pricing for the proposed loan to fund the acquisition may be tied to the Secured Overnight Financing Rate (SOFR), a key global benchmark. Air India was purchased by the Tata Group in 2022. The Tata Group acquired Air India from the Indian government after winning a bidding process.
&w=3840&q=100)
Business Standard
an hour ago
- Business Standard
Rupee trades near one-month low despite tariff cheers; opens at 86.41/$
The Indian Rupee opened near the one-month low level on Wednesday as the US-Japan trade deal failed to lift sentiments in the country's forex market. The domestic currency opened 4 paise lower at 86.41 against the dollar on Wednesday, according to Bloomberg. The rupee has witnessed nearly 0.93 per cent depreciation in the current calendar year. On Tuesday, the rupee briefly recovered to 86.22 before slipping to a one-month low of 86.41 against the greenback. The Indian rupee, which had weakened to 86.42 in the previous session, is set to trade stronger, supported by optimism around the Japan trade deal that lifted sentiment across Asian markets, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. Exporters are advised to hold off on booking, with a stop-loss at 86.25, as foreign portfolio investors (FPIs) continue to sell, analysts said. FPIs sold equities for teh second straight day, worth ₹3,548.92 crore, taking the total outflows in July to ₹5826 crore. Importers, meanwhile, may consider buying on dips for near-term cash requirements, Bhansali said. Rupee is expected to remain within a range of 85.75-86.60, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. On the tariffs front, the US President Donald Trump announced a trade deal, imposing a 15 per cent tariff on Japanese exports to the US. The Trump administration had also reached an agreement with the Philippines setting a 19 per cent tariff on their exports. Equity and currency markets in the Asia region rose after the deal announcement. ALSO READ: Following this, the dollar index, a measure of the greenback against a basket of six major currencies, was up 0.05 per cent at 97.44. In commodities, crude oil prices were stable amid US-Japan trade deal optimism and crude oil inventory decline of the US. Brent crude price was up 0.31 per cent at 68.80 per barrel, while WTI crude prices were lower by 1.47 per cent at 66.21, as of 9:09 AM IST. ALSO READ:
