a day ago
China's Bond Rout Seen Fading as Higher Yields Draw in Buyers
The selloff in Chinese bonds that sent them to near the bottom of Asia's performance rankings is likely to cool for now as yields rise to near levels which some investors may perceive as attractive, analysts say.
The benchmark 10-year bond yield has climbed to the highest in four months and is within whisker of 1.8%, a level that brokerages including Huachuang Securities see as appealing. Investors may start to rethink their strategy of shunning stocks for bonds, with rising yields also enhancing returns on trades that involve borrowing from the money market to buy debt.
