The World's Biggest Bond Rally Is Picking Up Steam in China
- Sovereign yield set for largest weekly retreat since April
- Debt aided by slower growth, bets on further monetary easing
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China’s government bonds -- the world’s best performing sovereign notes so far this year -- may have room to advance even further.
The securities will be supported by more monetary easing and stronger safe-haven demand amid lingering trade tensions, record corporate bond defaults and dropping stocks, China watchers say. The yield on 10-year sovereign notes has tumbled 51 basis points in 2018, while the costs on similar debt of most other major economies rose. Chinese yields are set to fall 10 basis points this week, the biggest drop since April.