China’s $51 Trillion Savings Help Bonds Outperform Global Peers

China’s $51 trillion savings glut has fueled demand for its debt, entrenching its role as a haven as the Iran war drives global volatility.

A basket of yuan-denominated high-grade debt — spanning government and corporate bonds — has been the best performer among all major Bloomberg fixed-income aggregate indexes this year, returning about 1.1%. Dollar bonds of high-quality Chinese issuers have also done better than US investment-grade credit and Treasuries over the same period.