(ATF) China bonds inched higher Tuesday, with gains limited by rising concern that global inflation is back on the cards.
Gains were also limited by bonds on the Corporate sub-index, which reversed a sharp gain from yesterday.
The benchmark ATF China Bond 50 Index climbed 0.02% to 107.01. Corporates fell 0.01% and have been trading at a notional loss since the gauge fell below 100 in June. The Enterprise, Financial and Local Government sub-indexes were all largely unchanged.
Asian equities rallied on a reflation trade as economies around the world signalled they were preparing to reopen from winter Coronavirus lockdowns. Inflation worries were also stoked by copper prices, which rose to a 9-1/2 year high and as oil extended gains.
Rising inflation erodes the value of the fixed payments on bonds, making them less attractive to investors.
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