Chinese investors snap up government bonds amid global market jitters over US Treasuries
While US Treasuries remain at the centre of a global bond sell-off despite efforts by US Treasury Secretary Scott Bessent to calm the market, investors in China are rushing to buy domestic government debt. After China’s Ministry of Finance issued a fresh batch of savings bonds worth up to 55 billion yuan (US$8.2 billion) on Thursday, domestic buyers took to social media to share tips on how to…
As global markets continue to experience trepidation over US Treasuries, Chinese investors are flocking to secure domestic government bonds. China's Ministry of Finance recently issued a fresh offering of savings bonds worth up to 55 billion yuan (US$8.2 billion), prompting buyers to rush to secure their share. Social media users expressed their frustration with the rapid allocation depletion, with one user setting an alarm to secure the bonds only to find them sold out within minutes.
Bank Branches, such as Bank of China, also reported swift sellouts of three- and five-year savings bonds, driven by long queues. The surge in demand in China can be attributed to several factors, including declining bank deposit rates, scarcity of alternative investment opportunities with safe and predictable returns, and a broader shift among households towards wealth preservation and steady income streams.
This domestic appetite for government bonds stands in stark contrast to the sell-off of US Treasuries, which has led to climbing yields in global markets. Despite the challenges, Chinese government bonds can offer diversification benefits in international portfolios, although they should not be directly compared to US Treasuries.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
