China Sovereign Bonds Tumble From No. 1 Ranking as Funds Flee
- Country’s bonds see record retreat from global funds in Feb.
- Benchmark yield may rise to 3%, China Asset Management says
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China’s sovereign bonds slid from the top of global performance rankings to near the bottom in recent weeks, undermining their status as an alternative haven just as global markets were roiled by the war in Ukraine.
The return on yuan debt, excluding currency fluctuations, slipped to 29th among 46 sovereign markets tracked by Bloomberg since Russia invaded Ukraine on Feb. 24, according to data compiled by Bloomberg. The securities had topped the rankings in January when they were touted as a haven due to China’s monetary policy divergence with the Federal Reserve.