Abrdn Bets on Chinese Long Bonds With 10-Year Yield Target of 1%
- Money manager favors 10-, 30-year debt as long-term investment
- Benchmark 10-year yields dropped to an all-time low this week
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China’s surging longer-maturity bonds are still a buy due to entrenched deflationary pressures and the prospect of further monetary easing, according to Abrdn Plc.
The money manager is holding long positions on 10-year debt with a yield target of 1% in about three years, and also favors 30-year bonds, said Edmund Goh, an investment director at Abrdn in Singapore. Persistent deflation means that real interest rates are still relatively high, providing room for further easing, he said.