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.

“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.

“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.