More and more institutions are entering the mainland debt market and a trading pattern is emerging, as the Bond Connect scheme and wider index inclusion loom closer.
Commodity prices are bouncing back, but will Asian asset owners now embrace an asset class they have long shunned? And is this the start of a new bull cycle, or a temporary rally?
Spreads are at historically tight levels, but portfolio managers believe asset allocators would be unwise to throw in the towel just yet.
However, they say Asian bond markets in general are likely to weather the rising trade tensions with the US better than many expect.
With President Donald Trump expected to impose import taxes and raise tariffs, equity experts recommend companies and sectors to buy in the region – and some to avoid.
Watch out for a rising dollar, say fixed income fund managers, who believe the second half of 2017 will drive performance of debt in certain markets, in a reversal of what happened last year.