The sudden yield “taper tantrum” that began in the middle of February 2021 and took markets by surprise seems to have settled. While they remain elevated, investors appear to have accepted current yield levels as the new normal — at least for now. The key question now dominating the financial news cycle is whether these higher yields herald any inflationary concerns.

Against this backdrop, most government bond markets saw sharp selloffs in the first quarter, as prices dropped in proportion to the yield increase. However, there was one notable outlier — China.

Outlier among major debt markets

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook