Pimco Says China Current Account Shift to Pressure Global Bonds

China’s current-account shifting into deficit will pressure global bond markets and speed the yuan’s move toward a more flexible trading regime.

That’s the view of Isaac Meng, an emerging-market portfolio manager at Pimco in Hong Kong. China’s current-account deficit in the nine months to September -- its first since 1993 -- shows how Beijing has rebalanced its economy away from exports to domestic demand.