Monthly report
Chinese yields fall further as lower inflation gives scope for more easing
Chinese spreads tightened versus the G7 in April, as yields fell more, helped by PBoC easing. A further fall in Chinese inflation, to below 1% y/y, gives policymakers more room to boost growth. Chinese $ IG credits matched US IG credit returns, but Chinese HY credits remain negative. Indonesian bonds led April gains.
Key highlights:
- Macroeconomic backdrop − IMF retains 5.2% GDP growth forecast in 2023 for China, despite property challenges
- Chinese bonds − onshore bond yields trended lower in April and YTD, stable yield curve
- Chinese and Asian bonds − Asian governments spreads tightened in April as yields fell more than G7
- Performance − Indonesian and Indian governments strongest performers in April, Korea underperformed
This report provides actionable insights on currency-adjusted performance, macro drivers, shifts in yields, spreads and curves across conventional government and corporate bonds, for both renminbi and dollar-denominated issues.
For specialist content on a range of investment topics, including macroeconomic analysis and how it affects market performance and multi-asset analysis, viewed through our indices and data, explore our Global Investment Research hub.
