SOE bond gauge climbs as risk bid returns

Rally of past three months fails to pick up after reflation-concern selloff last week 

SOE bond gauge climbs as risk bid returns

(ATF) A gauge measuring returns on the bonds of Chinese state-owned enterprises (SOEs) climbed the most in four weeks Wednesday as reflation concerns eased.

The broader non-sovereign market was little changed, reflecting investor reluctance to fully recommit to the world’s second-largest bonds market.

The benchmark ATF China Bond 50 Index was at 106.82, after a brief selloff straddling the weekend saw it shed 0.20%. The Enterprises sub-index climbed 0.03%.

Chinese corporate and local government bonds have rallied in the past three months as a stream of data showed the nation’s economy recovering strongly from the pandemic downturn. Recent reports, however, combined with a global selloff in bonds damped the allure of the debt.

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