Market Views: Will China bonds become a safe haven?

Despite its year-long trade spat with the US, China is continuing to open up its capital market, as was made clear by Beijing’s issuance of dollar- and euro-denominated government bonds in late November. The latest $6 billion issuance – the biggest round by far for dollar treasury by China – came amid a slowing supply of traditional safe haven assets, such as US Treasuries, Japanese government bonds and German Bunds. Analysis by Oxford Economics shows that the growth in such safe …