Why Citi is betting on China’s 30-year bonds as US Treasury yields climb - South China Morning Post
Why Citi is betting on China’s 30-year bonds as US Treasury yields climb - South China Morning Post
Source: South China Morning Post
―
DW NOTE
Citi is chasing yield in the one major bond market where central banks still print without pretending it's temporary. China's 30-year yields offer carry while the Fed has pushed US 10-year yields to 5.17% — up 24% year-over-year — by actually raising rates. The trade works until Beijing needs to devalue again, at which point that carry becomes a currency loss no one will call a hedge.