China sovereign bonds tumble from No. 1 ranking as funds flee

The return on yuan debt, excluding currency fluctuations, has slipped to 30th among 46 sovereign markets tracked by Bloomberg since Russia invaded Ukraine on Feb 24, according to data compiled by Bloomberg. They topped the rankings in January when they were touted as havens due to China’s monetary policy divergence with the Federal Reserve.

BEIJING: China’s sovereign bonds slid from the top of global performance rankings to near the bottom in recent weeks, undermining its status as an alternative haven just as global markets are roiled by the war in Ukraine.

The return on yuan debt, excluding currency fluctuations, has slipped to 30th among 46 sovereign markets tracked by Bloomberg since Russia invaded Ukraine on Feb 24, according to data compiled by Bloomberg.