Global bond markets see a sell-off wave, with panda bond issuance reaching a record high

Odaily News: Recently, long-term government bond yields in major global economies have continued to rise, intensifying selling pressure in the bond market. Meanwhile, China's bond market and exchange rate have remained relatively stable, with panda bond issuance reaching a historic high for the same period. Data shows that as of August 21, the cumulative issuance of panda bonds in 2026 reached RMB 209.975 billion, a year-on-year increase of over 73%. Against the backdrop of severe volatility in the global bond market, international institutions increasing their onshore RMB financing has drawn attention. Industry insiders noted: "We are in a completely different economic and monetary cycle compared to overseas markets. Foreign capital accounts for only about 5%-8% of China's bond market, with domestic capital holding absolute pricing power. Coupled with our monetary policy that prioritizes domestic conditions, overseas shocks cannot reverse the overall trend of the domestic bond market."

Looking ahead, industry insiders believe that overseas bond yields are likely to remain highly volatile, highlighting the allocation value of RMB bonds, which may attract continued inflows from foreign investors in the medium to long term. However, it should also be noted that rising U.S. Treasury yields have raised the return threshold for global allocation funds, which could somewhat disrupt overseas institutions' willingness to increase their holdings of RMB bonds. Additionally, the rapid rise in bond yields of developed overseas economies may also constrain valuations of domestic risk assets. (CCTV Finance)