Al City Advises 30-Year Chinese Bonds

City Bank recommends investors buy 30-year Chinese government bonds, as the bank expects China's sluggish economic growth and declining demand for long-term debt instruments to persist. This outlook supports increased demand for these bonds. The bank forecasts yields to decrease from the current around 2.1% to 1.8% in the future, due to weak domestic demand and subdued credit activity. This is further reinforced by Beijing's plan to capitalize financial institutions and expectations of resuming the issuance of longer-term bonds in the fourth quarter. This recommendation diverges from the global trend of rising yields driven by inflation, as the yields on 10-year bonds gradually decline toward 1.6%, while the Central Bank continues to support the Chinese debt markets.

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