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CHINA: China Government Bonds: The Case for the Un-Correlated.

CHINA
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• In recent months global bond market volatility has jumped, reflecting uncertainty around the Federal Reserve easing cycle and the US Election outcome, which delivered a red wave to the Republicans and may have strong implications for the fiscal/growth outlook in 2025.
• Global bond markets are correlated to the US bond market to varying degrees, China's market remains a clear outlier though in Asia.
• Other factors that drive Asian bond markets and influence their returns (and therefore impact changes in correlations) are supply and demand factors.
• Still, even with expectations of higher supply, China government bond yields have remained very resilient. PBoC policy actions have been supportive, particularly at a time of lower foreign ownership.
• In a global context though, Investing in China Government bonds is very lowly correlated to US Treasuries and hence global bond market volatility thereby providing a diversified return strategy for global investors when building portfolios.
• See the full piece here: https://marketnews.com/china-government-bonds-the-case-for-the-un-correlated. 

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• In recent months global bond market volatility has jumped, reflecting uncertainty around the Federal Reserve easing cycle and the US Election outcome, which delivered a red wave to the Republicans and may have strong implications for the fiscal/growth outlook in 2025.
• Global bond markets are correlated to the US bond market to varying degrees, China's market remains a clear outlier though in Asia.
• Other factors that drive Asian bond markets and influence their returns (and therefore impact changes in correlations) are supply and demand factors.
• Still, even with expectations of higher supply, China government bond yields have remained very resilient. PBoC policy actions have been supportive, particularly at a time of lower foreign ownership.
• In a global context though, Investing in China Government bonds is very lowly correlated to US Treasuries and hence global bond market volatility thereby providing a diversified return strategy for global investors when building portfolios.
• See the full piece here: https://marketnews.com/china-government-bonds-the-case-for-the-un-correlated.