Global investors are once again warming up to Chinese government bonds, after a selloff driven by a rotation into stocks sent yields to multi-month highs.
Allianz Global Investors has added Chinese bonds that are more sensitive to changes in interest rates, on expectations that further monetary easing to support the economy will eventually push yields lower. AllianceBernstein is turning overweight as 10-year yields approach 1.9%, while Aberdeen Investments is also considering additional debt purchases.