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Bloomberg
As rising US Treasury yields and potential credit tightening in China expose Chinese stock traders to wild market fluctuations, their bond peers are enjoying a period of relative calm.
A measure of 30-day volatility in Chinese shares has surged to its highest since August as the benchmark CSI 300 Index struggles to recover from a rout that’s seen it lose more than 13% since closing at a 13-year high last month. Meanwhile, swings in China’s key 10-year sovereign bond yields have narrowed to the lowest since late 2018, according to data compiled by Bloomberg.
Not just relative to local stocks, Chinese bonds have proved resilient even when compared to peers in other markets, as the global reflation trade has triggered increased price swings from Australia to Europe. China’s 10-year yield has moved within a tight seven basis-point range over the past month.