Allocation demand provides support; overseas rate hikes have not altered the independent trajectory of China's bond market.

Overseas rate hikes have not altered the relatively independent trajectory of China's bond market. On September 18, the main contracts for China's 30-year, 10-year, and 5-year treasury bond futures all rose, with the 30-year tenor leading the gains; in the cash bond market, the yield on the actively traded 10-year government bond fell to 1.676%. Industry insiders believe that differences in economic fundamentals and monetary policy expectations between China and other countries, as well as allocation demand from institutions such as banks and insurers, have supported the performance of the domestic bond market.