AllianceBernstein Joins Asset Management Peer Pimco in Turning Cool on China’s Bonds

(Bloomberg) — China’s reluctance to aggressively ease its monetary policy is putting a global bond fund on the defensive.

AllianceBernstein Holding LP slashed its duration risk on China bonds to benchmark weight after being overweight for 18 months. “It’s time to take a breather,” said Brad Gibson, co-head of Asia Pacific fixed income. The People’s Bank of China might be trying to avoid another rate cut, “so lower yields from here will be hard to see,” he said.