Chinese government bonds are likely to keep behaving differently from other countries' debt, strategists say, as China's yields have edged down in recent months even as benchmarks in the U.S., Japan and the U.K. surged to multi-decade highs. Invesco's Norbert Ling said China bonds have room to outperform developed-market peers on a risk-adjusted basis, with supportive macro policies and strong export growth helping demand for central government bonds. UBS's Chun Lai Wu noted July macro data came in weaker than expected, suggesting domestic demand may take longer to recover, and expects the People's Bank of China to remain supportive through liquidity operations and targeted credit measures. Saxo's Charu Chanana said China's rate cycle is increasingly distinct from the U.S., Europe and Japan, so Chinese government bonds can still play a diversification role for global portfolios.
Invesco PlcInvesco strategist sees China bonds outperforming, boosting demand for its bond funds
Goldman Sachs Group Inc