Investors raise bets on Fed making two rate cuts

Investors are betting for two rate cuts by the Fed on rising US economic growth concerns. Source: Financial Times Investors have increased bets that the Federal Reserve will cut US interest rates not once but twice this year, to counter concerns about slowing global economic growth that have been inflamed by the worsening US-China trade…

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China’s Bond Traders Battle 1-in-5,500 Odds to Boost Returns

Demand for Chinese convertible bonds rises as fixed income investors look to boost returns Source: Bloomberg Shut out of a world-beating rally in equities, China’s fixed income investors are chasing the next closest thing. The battle for equity-like returns is driving up interest in the country’s nascent convertible bond market. Showing just how coveted the…

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Green bond issues hit record high on ‘sustained global momentum’

 Green bond issuance hit a record high this year, with China and France taking the biggest shares. Source: Financial Times Green bond issuance hit a record high in the third quarter of this year, demonstrating booming investor demand for ethically labelled fixed income instruments. According to new figures from credit-rating agency Moody’s, nearly $95bn of…

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China’s Bond-Yield Curve Gets Bent Out of Shape

 Investor sentiment is mixed after Beijing’s campaign this spring to make Chinese markets less risky, with yields on seven-year government bonds rising above yields of both five-year and 10-year bonds. Source: The Wall Street Journal China’s $1.7 trillion government-bond market is turning ever weirder. In a fresh sign of the nerves among investors caused by Beijing’s campaign this…

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Chinese Bonds could Trigger ‘Tremendous’ Demand from Wall Street

Foreign investors own just 1.2 percent of China’s $9 trillion bond market, but Wall Street’s attitude toward Chinese bonds may soon change Source: CNBC Suddenly, Wall Street is getting more serious about investing in Chinese bonds. The “potential demand is tremendous,” Rick Rieder, global chief investment officer of fixed income at BlackRock, told CNBC Tuesday. Major…

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