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China’s Safest Credit in Worst Selloff Since 2017 on Good News

  • Yields on three-year AAA yuan notes reach highest in 13 months
  • Risk assets have gained favor as Covid policies ease: analyst
Updated on

The mood for risk is seeping into every corner of Chinese markets, with policy moves to ease Covid curbs and revitalize the economy boosting stocks and the yuan, while fueling the biggest slump in years for high-grade corporate debt. 

Yields on most AAA rated domestic corporate bonds jumped at least 10 basis points Tuesday, according to traders. They hit a 13-month high of 3.16% Monday for three-year notes of the same rating, after logging the biggest increase since 2017 last month, according to Bloomberg-compiled data.