News Analysis Beijing experienced limited success in its quest to overtake the U.S. dollar as the global trade currency. But it may have an easier time convincing the world of its government bonds as an investment alternative to U.S. treasuries. So far in 2021, Chinese government bonds have far exceeded the performance of their U.S. counterparts. Since Jan. 1, Chinese government bonds were relatively flat in terms of returns from Jan. 1 through the end of March. In contrast, the Bloomberg Barclays U.S. Treasuries Total Return index fell 4.2 percent during the same period. Some investment experts think Chinese government bonds could usurp U.S. treasuries as the de facto “haven” asset. “China’s emergence as a new and credible safe haven destination for bondholders should gradually chip away at the status of the dollar and U.S. Treasuries as the only safe place to hide,” Gustavo Medeiros, deputy head of research at Ashmore …
News Analysis Beijing experienced limited success in its quest to overtake the U.S. dollar as the global trade currency. But it may have an easier time convincing the world of its government bonds as an investment alternative to U.S. treasuries. So far in 2021, Chinese government bonds have far exceeded the performance of their U.S.
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