The Bond Bulls Are Taking Over in China With 2% Yield Forecasts
- Record advance will extend further this year, survey shows
- There’s chance of economic growth below 6%, Guotai Junan says
A Chinese worker walks past the city's charging bull statue in Shanghai, China.
Photographer: Philippe Lopez/AFP via Getty ImagesThis article is for subscribers only.
There’s money to be made in Chinese bonds yet, says Zhou Li.
The China fixed-income veteran, who helped set up the nation’s debt market as a manager at the National Interbank Funding Center in the mid-1990s, predicts that a two-year sovereign rally has a long way to go. The benchmark 10-year yield will extend declines from a decade-low of 2.64 percent and possibly touch 2 percent this year as the economy slows, Zhou said. His view was among the most bullish in a survey of 24 traders and analysts, where the median estimate was for a drop to 2.5 percent.