Charu Chanana

“For global portfolios, CGBs can still play a diversification role because China's rate cycle is increasingly distinct from the U.S., Europe and Japan,”

Charu Chanana · said date not stated · reported 2026-08-20

Chanana said in an email that CGBs can play a diversification role due to China's distinct rate cycle.

“investors should increasingly ask why U.S. yields are rising.”

Charu Chanana · said date not stated · reported 2026-08-19

Chanana argued that the historic relationship between Treasury yields and dollar strength still matters but investors should question the reasons behind rising yields.

“A higher yield generated by stronger economic fundamentals is not necessarily equivalent to a higher yield generated by a larger risk premium. That distinction may help explain why higher Treasury yields have recently coexisted with less convincing dollar strength.”

Charu Chanana · said date not stated · reported 2026-08-19

Chanana distinguished between yield increases driven by strong fundamentals versus a larger risk premium.

“For international investors, U.S. assets have benefited for years from both strong underlying returns and a strong dollar. If that relationship becomes less consistent, geographical diversification may matter more.”

Charu Chanana · said date not stated · reported 2026-08-19

Chanana said a breakdown in the yield-dollar relationship could have broader portfolio consequences for international investors.