Chinese government bonds outperform amid tech conflict
Over the past seven years, Chinese government bonds with 7-10 year maturities have delivered the strongest returns in US dollar terms among major markets, while Japanese bonds have suffered a 32% loss, marking the worst performance. This highlights significant fluctuations in the global sovereign debt market
Japanese government bonds recorded historic losses, falling 32% in dollar terms over seven years. German bonds followed with an 8% decline during the same period. Meanwhile, Chinese bonds maintained relatively stable returns despite ongoing global technological conflicts and market uncertainty.
This trend underscores the potential advantage of Chinese debt instruments during geopolitical tensions and may lead investors to reconsider portfolio allocations toward East Asian assets.
