Chinese government bonds: it’s not all about yields

Higher yields, the internationalisation of the Renminbi, improved liquidity, and China’s recovery are contributing to global asset owners’ growing appetite for Chinese sovereign bonds in their fixed income portfolio, despite regulatory risks. With developed markets sovereign bond yields hovering around 1%, and at times falling into negative territory, Chinese government bonds are looking more attractive, trending from 2.1% to as high as 3.4%. “What's interesting is that compared…