Chinese government bond yields are falling at the fastest pace this year relative to U.S. Treasuries as a slowing economy curbs inflation.
China’s yuan is set to pull out of its steepest slide since 2011 in offshore trading as the nation’s $3.8 trillion of foreign reserves coupled with inflows from trade and investment deter bets on further losses.
Philippine bonds dropped, pushing yields to a four-month high, on speculation the central bank will halt interest-rate cuts on signs the economy is recovering. The peso strengthened.
China’s yuan snapped a three-day drop as the central bank boosted the daily fixing to a record before U.S. Treasury Secretary Jacob J. Lew visits this week.
"Generally there's risk-off sentiment on the back of the ongoing uncertainty in Greece and the rising probability of euro easing."
- Ju Wang on Jan 04, 2015