{
  "id": 14066771,
  "title": "Hong Kong investors are warming to US Treasury bonds as yields hit 20-year high",
  "url": "https://urgent.news/2026/10/12/hong-kong-investors-are-warming-to-us-treasury-bonds-as-yields-hit-20",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-12T23:00:30.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/china-business/article/3370557/hong-kong-investors-are-warming-us-treasury-bonds-yields-hit-20-year-high"
  },
  "original_language": "en",
  "account": "Hong Kong investors are growing more interested in US Treasury bonds as yields approach a twenty-year high. This shift comes after a prolonged drop in prices pushed yields to multi-decade highs, with some experts even recommending a buy. The benchmark 10-year Treasury yield soared above 5.36 percent on Wednesday, its highest in 24 years, before settling around 5.23 percent on Thursday after a successful auction of $22 billion in 30-year government bonds. Elevated yields offer investors a chance to secure attractive income and potential capital gains if yields drop, but concerns about further Federal Reserve tightening, ongoing inflation, and substantial US government borrowing could keep yields elevated, according to strategists. Standard Chartered has become more optimistic, recommending an opportunistic long position in 10-year Treasuries after yields rose above 5 percent. The bank anticipates the 10-year yield to decline to 4.75 to 5 percent over the next six to twelve months, citing expectations of cooling inflation and a less aggressive Federal Reserve tightening cycle than initially anticipated. Nonetheless, some analysts caution that the market may not have hit its bottom yet, and investors should gradually build positions during the fourth quarter. Unlike those favoring short-term bonds, Cusson Leung, CIO of international wealth management at KGI, prefers 10- to 30-year Treasuries, predicting that inflationary pressures will ease by the end of 2027, potentially reigniting Fed rate cut expectations. Other investors remain cautious about taking on excessive duration risk. Jason Chan, a senior investment strategist at Bank of East Asia, favors three- to five-year Treasuries, which provide sufficient income to buffer against further yield increases while limiting exposure to price volatility. He advises against longer-dated bonds due to persistent inflation, fiscal deficits, and potential crowding-out effects from AI-related capital expenditure. Louis Wong, executive director at Phillip Capital Management, also supports the middle of the yield curve, particularly five- to 10-year Treasuries. He notes that a 10-year yield near 5.25 percent is high compared to the past decade, but the next move in yields could still be upward. Wong emphasizes that the elevated yields are attracting Hong Kong and mainland investors, as these assets provide returns around 5 percent, competing with local bank deposits and dividend-paying stocks. However, Hong Kong's currency peg to the US dollar limits exchange-rate risks, whereas mainland investors funding purchases in yuan face greater currency uncertainty. Further Federal Reserve tightening could leave bondholders facing capital losses before they have earned enough income to offset them, Wong warns. Wong suggests investors focus on two- to 10-year Treasuries or short-term Treasury funds while managing currency exposure to prevent exchange-rate movements from eroding their returns.",
  "summary": "US Treasuries are looking increasingly attractive to Hong Kong investors after a prolonged sell-off pushed yields to multi-decade highs, prompting some strategists and wealth managers to recommend buying while others warned that further losses may lie ahead. The benchmark 10-year Treasury yield surged above 5.36 per cent on Wednesday, its highest in 24 years, before retreating to around 5.23 per…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "South China Morning Post - Hong Kong",
        "title": "China finance minister to deliver opening speech at Apec meeting in Hong Kong",
        "url": "https://urgent.news/2026/10/12/china-finance-minister-to-deliver-opening-speech-at-apec-meeting-in",
        "published": "2026-10-12T23:00:37.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}