Onshore Chinese bonds have delivered the best performance year to date and over the trailing year, outperforming other world bond markets as of the end of July.
The markets have turned to the US for guidance on the interest rate direction, estimating that by the end of the year the Federal Reserve will pause its tightening.
Much of the looming growth deterioration seems already priced in fixed income. With the peak in inflation still to come and further key rate hikes still in the offing, we expect yields to trend moderately upwards again in the weeks to come.
This is according to new research from Aeon Investments, the London based credit-focused investment company, which surveyed professional investors in Europe and the US who collectively have around $437 billion in assets under management.