(Photo/cankaoxiaoxi.com)

For the international buyers of government debt, Chinese debt has become their new choice.

Since this June, the return rate of national debts around the world has dropped substantially. On June 14, the return rate of 10-year government debt of Germany became negative for the first time in history, and on June 16, the return rate of the 30-year government debt of the Swiss was also below zero. The return rates of government debt of Japan, UK, and Australia have all hit record lows this June. 

Insiders pointed out that the loose supply in the government debt market for a long period of time is the main cause of the decline in the return rate. The ultra-low interest rates have lasted for years globally. The central bank of Europe and Japan even adopted negative interest rates to stimulate their economies. 

However, the investors' need for high quality bonds is still in upsurge. Even the negative interest rate bonds don't lack buyers. According to the statistics of credit ratings agency Fitch, by the end of this May, the issuance of the negative interest rate government debt has reached 10.4 trillion USD globally, with 7.3 trillion USD in long-term bonds and 3.1 trillion USD in short-term bonds. 

In this context, the Chinese debts with a relatively high return rate have become the favorite of investors. The biggest Chinese government debt ETF in offshore market, the CSOP five-year government debt ETF, had a record-setting 1 billion RMB inflow on June 15. 

Last week, the "wind indicator" 10-year Chinese debt set a new record with the largest weekly jump in the past five months. Until June 21, the return rate of Chinese debt was 2.94 percent, which is significantly higher than that of Germany and Japan.

Some analysts said that the central bank of China may postpone the monetary easing policy in view of the overheating real estate market and other factors, which will help to raise the return rate of Chinese debt and attract more international investors.