By Brad Gibson
A strong global bond rally, courtesy of massive central bank responses to the COVID-19 pandemic, has left government bond yield curves very low - with negative yields not uncommon. Policy rates have been slashed, quantitative easing programs launched or reignited, and an alphabet soup of unconventional measures rolled out to shore up financial markets and support fiscal rescue packages.
Chinese government bond yields, however, have bucked the trend, with 10-year bond yields climbing from their April lows of 2.4% to top 3%, putting them at pre-COVID-19 levels. Does this signal the path