Barings' Head of Greater China Investments, Khiem Do, tells CNBC why the firm sees value in the Chinese yuan as well as the country's 10-year government bond at present.
which the currency is then allowed to trade within a 2% band above or below.
The yuan's offshore counterpart, which trades more freely that the onshore currency, changed hands at 7.1737 against the dollar. Earlier on, it had weakened to 7.1755 per dollar — its weakest level since Sept. 4, 2019 — according to Reuters.In addition to finding investing opportunities in the yuan, Do also said there's value in the current Chinese 10-year bond rate.Yields around those levels represent more value compared to other bond markets elsewhere, Do said.
"The Chinese 10-year bond rate at about 2.6 or thereabout actually presents a lot more value relative to the … other OECD bond markets," he said referring to countries in the Organization for Economic Cooperation and Development.Khiem Do"If you look at the U.S. bond market, it's trading at about 0.7%," he said, referring to the yield on the benchmark U.S. 10-year Treasury note, which was last at 0.6916%. "If you look across ... Europe, it's mostly negative.
"We think that actually the Chinese 10-year government bond rate, at about 2.7%, is very good value," Do said.
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