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JrmRlt
Jul 12, 2020 6:03 PM

Probable increase in Chinese government bond yields Long

China 10 Year Government Bonds YieldTVC

Description

Yields are still currently low based on the long-term regression trend.

What does it imply for RMB bonds if we expect a rate increase in the mid-term (independently of exchange rate movements)?
- Avoid long-duration RMB government bonds,
- Prefer short duration or floating-rate ones.

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