Recently, long-term treasury bond yields in major global economies have continued to rise, and the sell-off pressure on the bond market is heating up. However, the Chinese bond market and exchange rate have maintained a relatively smooth operation, and the scale of panda bond issuance has reached a record high for the same period in history. According to the data, as of August 21, the cumulative issuance scale of panda bonds in 2026 reached 209.975 billion yuan, an increase of more than 73% over the previous year. Against the backdrop of drastic fluctuations in global bond markets, international institutions are increasing domestic RMB financing, drawing attention. An industry insider explained, “We are in a completely different economic and monetary cycle than overseas. Foreign capital accounts for only about 5% to 8% of China's bond market, and domestic capital has absolute pricing power. Combined with our monetary policy adhering to me as the main focus, overseas shocks cannot reverse the overall trend of the domestic bond market.” Looking ahead to the future market, industry insiders believe that the yield on overseas bonds is likely to remain high, the allocation value of RMB bonds is prominent, and the medium to long term may welcome a continuous increase in foreign capital allocation. However, it is also important to note that higher yields on US bonds have raised the return threshold for global allocated funds, and may disrupt the will of overseas institutions to increase their holdings of RMB bonds. Furthermore, the rapid rise in bond yields in overseas developed countries may also limit domestic risk asset valuations.

Recently, long-term treasury bond yields in major global economies have continued to rise, and the sell-off pressure on the bond market is heating up. However, the Chinese bond market and exchange rate have maintained a relatively smooth operation, and the scale of panda bond issuance has reached a record high for the same period in history. According to the data, as of August 21, the cumulative issuance scale of panda bonds in 2026 reached 209.975 billion yuan, an increase of more than 73% over the previous year. Against the backdrop of drastic fluctuations in global bond markets, international institutions are increasing domestic RMB financing, drawing attention. An industry insider explained, “We are in a completely different economic and monetary cycle than overseas. Foreign capital accounts for only about 5% to 8% of China's bond market, and domestic capital has absolute pricing power. Combined with our monetary policy adhering to me as the main focus, overseas shocks cannot reverse the overall trend of the domestic bond market.” Looking ahead to the future market, industry insiders believe that the yield on overseas bonds is likely to remain high, the allocation value of RMB bonds is prominent, and the medium to long term may welcome a continuous increase in foreign capital allocation. However, it is also important to note that higher yields on US bonds have raised the return threshold for global allocated funds, and may disrupt the will of overseas institutions to increase their holdings of RMB bonds. Furthermore, the rapid rise in bond yields in overseas developed countries may also limit domestic risk asset valuations.