China bonds still flying high as government debt sees rout throughout Asia

Yields on Chinese government debt have remained high despite a rout in bond markets around the world, with US$493 million invested in Chinese bonds over the past three weeks, The Wall Street Journal reported, citing figures from data provider EPFR Global. The yield on 10-year government bonds remained at 3.4% even as other Asian bonds tumbled Tuesday. “The bullish vibe towards China is mainly driven by central bank’s easing and targeted lending, and the belief that the economy will recover and bottom out, though the current macro data is still very weak,” said Desmond Soon, Asia co-head at Western Asset Management.