China-US trade war

Asian bonds a good bet during trade war

As the trade dispute between China and the US drags on, yields on Asian bonds are looking like a much better bet than either Asian equities or bonds from outside the region.
Asian bonds are a better bet than US and European bonds now.
Asian bonds are a better bet than US and European bonds now.

As the Sino-US trade war intensifies and exacerbates uncertainty, Asian bonds, including Chinese paper, are generally becoming more attractive to international investors.

“My bias would be to buy China offshore debt on the expectation that a favorable trade deal outcome should cause spreads to tighten,” said Peter Sengelmann, chief investment officer of US investment management and financial planning firm Thun Financial.

International investor demand for Chinese offshore bonds is likely to continue, since many investors want to hedge against the impact of the trade war on the US economy.

“Overall, we prefer bonds to stocks. Equities are much more sensitive and higher risk...

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