Next Major Play May Be China Government Bonds

Forget those periodic fears about the size of China’s holdings of U.S. Treasurys. Now, some managers are pointing to buying China’s government bonds as the next big play.

“You’re talking about the third largest bond market in the world and effectively the world has zero allocation,” Hayden Briscoe, director of Asia-Pacific fixed income at AllianceBernstein, told CNBC. “This is a market that’s under-researched and it needs to get into peoples portfolios.”

It’s a turnabout from regularly appearing concerns about China’s large holdings of U.S. government debt. The mainland is currently the largest foreign holder with $1.27 trillion worth of Treasurys at the end of September, or around 7 percent of the total.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.