Five Charts Showing Why Chinese Bonds Will Lure Foreigners
- A steadier yuan, lower costs and monetary easing are draws
- Schroder, State Street and Pictet are bullish on Chinese debt
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Chinese government bonds -- one of the few investments to have a positive return this year -- are likely to hold their appeal to foreign investors in 2019, despite recent selling.
The yield on 10-year government debt fell 55 basis points to 3.35 percent this year as the economy slowed and a collapse in the stock market sent investors to the shelter of state debt. While foreigners turned net sellers of Chinese bonds last month for the first time in almost two years, overseas net inflows so far this year were more than 450 billion yuan ($65 billion).