China Government Bonds Tumble From Top Ranking as Funds Flee

(Bloomberg) — China’s government bonds slid from the top of global performance rankings to near the bottom in recent weeks, undermining their status as an alternative haven just as global markets were roiled by the war in Ukraine.

The return on yuan debt, excluding currency fluctuations, slipped to 30th among 46 sovereign markets tracked by Bloomberg since Russia invaded Ukraine Feb. 24, according to data compiled by Bloomberg. The securities topped the rankings in January when they were touted as a haven due to China’s monetary policy divergence with the Federal Reserve.