Analysis: Why China’s 30-Year Government Bonds Have Become an Investor Darling

China’s 30-year government bonds have been an investment bright spot since the beginning of this year, but to really understand their appeal, we need to take a closer look at the interplay between supply and demand.

On the demand front, insurers have shown a growing appetite for ultra-long bonds. Last year, they allocated nearly 90% of their new investment to bonds, with the main focus probably on ultra-long government bonds. The percentage was between 65% and 75% in 2021 and 2022.