How China is seen increasingly shaping Asian bond markets

In a matter of years how many is unclear but perhaps sooner than many people think China’s monetary policy will exert a much bigger influence on Asian bond markets than they do currently, say senior market professionals.

For now, though, these markets still look mainly to the US and, while the Sino-US trade war continues and the ability to freely trade the Chinese currency remains curtailed, that looks likely to remain the case, they add.

“In future, just as Asian economies will be increasingly influenced by China, the pricing of Asian bonds will likely be more strongly influenced by Chinese treasuries,” Brad Gibson, co-head of Asia Pacific...