China Bond Rally Still Has Room to Run, Ex-HKMA Manager Says

The People’s Bank of China may shift the interest-rate corridor down by 10 basis points in the second quarter if economic data continue to show softness, said Ng, who left the HKMA in 2015 and established investment firm Eastfort Asset Management Pte Ltd. “2019 should still be a mild bull market for China bonds, at least for the first half of the year given a dovish Fed, slowing onshore growth and more aggressive PBOC stance,� said Ng, who favors the nation’s five-year notes. Yields on China’s benchmark five- and 10-year notes have tumbled by almost 100 basis points over the past year as the U.S.-China trade war dent exports and factory output, spurring investors to seek havens.

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China Bond Rally Still Has Room to Run, Ex-HKMA Manager Says