The Chinese Reopening Trade Is Negative for Local Bond Yields

In rate space, it's an interesting puzzle, this reopening of China. I've never ever seen a divergence compared to what we see right now between US and Chinese interest rates. So expect interest rates in China, especially longer term bond yields to rise through this economic rebound happening on the back of the reopening. But stay away from Chinese bonds throughout this reopening. The reopening trade is negative for local bond yields in Asia. If you look broadly speaking across the commodity complex, I've taken a look at historical data on the Chinese economy relative to all commodity asset classes. And if we look at a one year correlation, we should actually expect crude oil and gasoline to rise as a