Chinese Bonds Dodge Global Debt Sell-Off as Yield Gap Widens

(Bloomberg) — China’s sovereign bonds have once again dodged a rout in the global debt market, showcasing one of their frequently cited attractions for investors — a low correlation with their worldwide peers.

The nation’s benchmark 10-year yield has dropped about 23 basis points this year, while similar-maturity U.S. Treasury yields have jumped 78 basis points. China’s outperformance is being driven by a differing economic cycle: the central bank is looking to ease policy to support growth, while policymakers in much of the world keep interest rates elevated to suppress inflation.