People wearing face masks walk past the headquarters of the People's Bank of China on April 4. The Chinese central bank’s conservative approach in its response to the economic impact of the Covid-19 pandemic could make it a darling for bond investors seeking higher yields. Photo: Reuters People wearing face masks walk past the headquarters of the People's Bank of China on April 4. The Chinese central bank’s conservative approach in its response to the economic impact of the Covid-19 pandemic could make it a darling for bond investors seeking higher yields. Photo: Reuters
People wearing face masks walk past the headquarters of the People's Bank of China on April 4. The Chinese central bank’s conservative approach in its response to the economic impact of the Covid-19 pandemic could make it a darling for bond investors seeking higher yields. Photo: Reuters
Kerry Craig
Opinion

Opinion

Macroscope by Kerry Craig

China’s bond market a potential hero for investors seeking yields

  • The People’s Bank of China has similar tools as other central banks but chose to use them more delicately than the sledgehammer approach of its peers
  • The relatively conservative nature of its support has increased the attractiveness of Chinese government bonds by creating a healthy spread over developed bonds

People wearing face masks walk past the headquarters of the People's Bank of China on April 4. The Chinese central bank’s conservative approach in its response to the economic impact of the Covid-19 pandemic could make it a darling for bond investors seeking higher yields. Photo: Reuters People wearing face masks walk past the headquarters of the People's Bank of China on April 4. The Chinese central bank’s conservative approach in its response to the economic impact of the Covid-19 pandemic could make it a darling for bond investors seeking higher yields. Photo: Reuters
People wearing face masks walk past the headquarters of the People's Bank of China on April 4. The Chinese central bank’s conservative approach in its response to the economic impact of the Covid-19 pandemic could make it a darling for bond investors seeking higher yields. Photo: Reuters
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