Bonds Rise Around World as China’s Yuan Move Dims Rates Outlook
This article is for subscribers only.
Developed-market government bonds rose after China devalued the yuan by the most in two decades to combat an economic slowdown, boosting demand for fixed-income assets.
European securities rallied along with Treasuries on speculation China’s move signaled a deepening slowdown that will weigh on global growth and encourage central banks to keep interest rates lower for longer. A drop in commodities prices on the news from China added to the appeal of government debt as it weighed on the inflation outlook.