Chinese Bonds Avoid Global Debt Liquidation as Yield Gap Widens – Caixin Global

(Bloomberg) — Chinese sovereign bonds once again avoided a rout in the global debt market, showcasing one of their frequently cited attractions by investors: low correlation with their global peers.

The country’s benchmark 10-year yield has fallen about 23 basis points this year, while yields on U.S. Treasuries with similar maturities have jumped 78 basis points. China’s outperformance is due to a different economic cycle: the central bank seeks to ease policy to support growth, while policymakers in much of the world maintain high interest rates to suppress inflation .